CLW Earnings Prediction
The chart below shows how CLW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CLW sees a +1.79% change in stock price 10 days leading up to the earnings, and a +1.25% change 10 days following the report. On the earnings day itself, the stock moves by -0.04%. This data can give you a slight idea of what to expect for the next quarter's release.
CLW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
393.30M
-24.35%
-32.93%
Gross Margin
7.65%
-57.00%
26.03%
Operating Margin
0.51%
-95.15%
-168.00%
Net Margin
-2.75%
-139.06%
-37.50%
EPS
0.35
-83.87%
-122.58%
No Data Available
CLW Earnings Analysis
Clearwater Paper Corporation Corporation (CLW.N) Earnings Conference Call
Positive
Strong Q3 EBITDA Performance: We had a very good third quarter overall, delivering $64 million of adjusted EBITDA. This was in the middle of our guidance range of $58 million to $68 million.
Tissue Business Sale Proceeds: We closed on the sale of our tissue business on November 1. We expect to net approximately $850 million in cash from the sale after taxes and other customer expenses.
Share Repurchase Program: Our board approved a $100 million share repurchase program. We intend to buy back shares when they trade at a sufficient discount to what we believe to be our inherent value.
EBITDA Margin and Cash Flow Targets: We are targeting adjusted EBITDA margins of 13% to 14% and a 40% to 50% free cash flow conversion ratio. This assumes revenues of approximately $1.8 billion and includes the capture of Augusta synergies, which are primarily volume driven.
EBITDA Margin and Conversion Targets: We are targeting adjusted EBITDA margins of around 8% to 10% and up to a 20% adjusted EBITDA to free cash flow conversion ratio.
Negative
EBITDA Decline Analysis: The adjusted EBITDA for the third quarter of 2024 was $64 million, which was down from $53 million last year, indicating a decline in profitability.
Hurricane Helene Financial Impact: The impact from Hurricane Helene was around $5 million, negatively affecting the company's financial results.
Market Pricing Pressures Impact Revenue: Year-over-year results were down largely due to market pricing pressures, which have impacted revenue generation.
Adjusted EBITDA Decline: The company expects to incur $25 million to $30 million less adjusted EBITDA in the fourth quarter due to the sale of the tissue business, indicating a significant revenue loss.
Negative Price Cost Impact: The anticipated negative price cost impact for next year is projected to be between $40 million to $50 million, which could further strain financial performance.
CLW FAQs
How does CLW typically perform around its earnings report dates?
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CLW Earning Call Sentiment
Clearwater Paper Corporation (CLW) Q3 2024 Earnings Call Transcript
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00:00
00:00
CLW.N
-5.37%Positive
The earnings call presented mixed signals: strong shareholder return with a $100 million buyback, but financial performance was impacted by cyclical industry risks, hurricane effects, and market pricing pressures. The Q&A revealed management's reluctance to disclose pricing strategies, adding uncertainty. Despite optimistic guidance and strategic investments, the cyclical nature and upcoming capacity expansion pose risks. Overall, the sentiment is neutral, with potential for slight movement based on market conditions and execution of strategic plans.
