Market Overview

Clearwater Paper's Earnings: A Preview

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Clearwater Paper (NYSE: CLW) unveils its next round of earnings this Tuesday, November 03. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Clearwater Paper EPS is expected to be around $1.34, according to sell-side analysts. Sales will likely be near $461.62 million. In the same quarter last year, Clearwater Paper announced EPS of $0.5 on revenue of $445.19 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 368.0% increase in the company's EPS figure. Revenue would be have grown 3.69% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.44 -0.01 0.16 -0.32
EPS Actual 1.67 0.57 0.37 -0.50
Revenue Estimate 477.27 M 443.84 M 434.47 M 436.09 M
Revenue Actual 480.50 M 477.90 M 435.50 M 445.19 M

Stock Performance

Shares of Clearwater Paper were trading at $37.13 as of October 29. Over the last 52-week period, shares are up 85.56%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Clearwater Paper is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings