Clearwater Paper (NYSE:CLW) Announces Quarterly Earnings Results

Clearwater Paper (NYSE:CLW) announced its quarterly earnings results on Tuesday. The basic materials company reported ($1.75) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.49) by ($0.26), Zacks reports. The company had revenue of $374.80 million for the quarter, compared to analysts’ expectations of $374.80 million. Clearwater Paper had a negative net margin of 3.24% and a negative return on equity of 7.91%.

Here are the key takeaways from Clearwater Paper’s conference call:

• Second-quarter profitability remained weak: Clearwater Paper reported a $21 million net loss and negative $8 million of adjusted EBITDA, as an 8% shipment increase was more than offset by a 9% decline in market pricing and higher outage, transportation, and chemical costs.
• SBS industry conditions are improving. The company cited 6% year-to-date industry shipment growth, an 11% decline in imports, reduced industry production, and operating rates expected to exceed 90% by year-end.
• Two planned $60-per-ton price increases are expected to begin benefiting results in the second half of 2026; the first increase and related index changes are expected to provide a $50 million-$60 million annualized EBITDA benefit, with a larger impact expected in 2027.
• The Iran conflict is expected to raise chemical and transportation costs by an additional $3 million-$5 million in the third quarter and negatively affect full-year results by approximately $20 million-$25 million.
• Cost reductions and balance-sheet actions continue: the Cypress Bend restructuring is expected to save $8 million-$12 million annually, net debt fell $59 million in the quarter, and management expects positive free cash flow for 2026 while pursuing refinancing ahead of facility maturities.

Clearwater Paper Stock Performance

Shares of Clearwater Paper stock traded down $0.41 on Thursday, hitting $21.20. 95,530 shares of the company’s stock were exchanged, compared to its average volume of 216,427. Clearwater Paper has a 1 year low of $11.73 and a 1 year high of $23.83. The company has a 50-day simple moving average of $16.20 and a 200-day simple moving average of $15.74. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.26 and a current ratio of 2.61. The stock has a market capitalization of $341.82 million, a PE ratio of -6.97 and a beta of 0.27.

Wall Street Analysts Forecast Growth

CLW has been the topic of several research reports. Bank of America started coverage on shares of Clearwater Paper in a report on Thursday, July 2nd. They issued a “buy” rating and a $19.00 target price on the stock. TD Securities reissued a “hold” rating and set a $20.00 price target on shares of Clearwater Paper in a report on Wednesday. Wall Street Zen cut Clearwater Paper from a “hold” rating to a “sell” rating in a report on Sunday, June 28th. TD downgraded Clearwater Paper from a “buy” rating to a “hold” rating and dropped their price target for the stock from $19.00 to $17.00 in a research note on Wednesday, April 29th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Clearwater Paper in a report on Friday, May 8th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Clearwater Paper currently has a consensus rating of “Hold” and an average price target of $18.50.

Hedge Funds Weigh In On Clearwater Paper

Institutional investors have recently bought and sold shares of the stock. Meeder Asset Management Inc. bought a new stake in Clearwater Paper during the fourth quarter valued at about $47,000. Tower Research Capital LLC TRC lifted its position in shares of Clearwater Paper by 34.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,185 shares of the basic materials company’s stock valued at $60,000 after buying an additional 563 shares in the last quarter. BNP Paribas Financial Markets grew its stake in shares of Clearwater Paper by 608.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 6,585 shares of the basic materials company’s stock valued at $179,000 after acquiring an additional 5,656 shares during the period. Caxton Associates LLP purchased a new stake in Clearwater Paper in the 1st quarter worth approximately $204,000. Finally, Deutsche Bank AG raised its stake in Clearwater Paper by 7.0% during the 4th quarter. Deutsche Bank AG now owns 12,319 shares of the basic materials company’s stock worth $214,000 after acquiring an additional 802 shares during the period. 89.98% of the stock is owned by institutional investors.

Clearwater Paper Company Profile

Clearwater Paper Corporation is an independent manufacturer of premium tissue and pulp and paperboard products for private-label and commercial customers in North America. The company operates through two core segments: Consumer Products, which produces bathroom tissue, paper towels and other away-from-home tissue products under private-label contracts; and Pulp & Paperboard, which supplies bleached paperboard used in folding cartons, foodservice packaging and specialty paper applications.

The Consumer Products segment services retail grocers, warehouse clubs, online merchants and janitorial distributors, leveraging multiple converting facilities to produce roll and folded tissue items for both household and institutional use.