Clearwater Paper (NYSE:CLW) Issues Earnings Results

Clearwater Paper (NYSE:CLW) announced its quarterly earnings results on Tuesday. The basic materials company reported ($1.75) EPS for the quarter, missing analysts’ consensus estimates of ($1.49) by ($0.26), Zacks reports. Clearwater Paper had a negative return on equity of 3.94% and a negative net margin of 1.63%.

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 Price Performance

NYSE:CLW traded up $0.34 during mid-day trading on Tuesday, reaching $17.56. 202,904 shares of the company were exchanged, compared to its average volume of 211,082. Clearwater Paper has a 12 month low of $11.73 and a 12 month high of $30.02. The company has a fifty day moving average of $15.96 and a 200 day moving average of $15.74. The company has a quick ratio of 1.26, a current ratio of 2.61 and a debt-to-equity ratio of 0.44. The stock has a market cap of $283.15 million, a PE ratio of -11.40 and a beta of 0.27.

Wall Street Analyst Weigh In

CLW has been the topic of several analyst reports. Zacks Research upgraded Clearwater Paper to a “hold” rating in a research note on Monday, July 6th. Wall Street Zen downgraded Clearwater Paper from a “hold” rating to a “sell” rating in a research report on Sunday, June 28th. Bank of America initiated coverage on Clearwater Paper in a research note on Thursday, July 2nd. They issued a “buy” rating and a $19.00 price target on the stock. Truist Financial upped their price target on Clearwater Paper from $12.00 to $17.00 and gave the company a “hold” rating in a research report on Wednesday, July 15th. Finally, Royal Bank Of Canada dropped their price objective on Clearwater Paper from $20.00 to $19.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. Two research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $18.17.

Hedge Funds Weigh In On Clearwater Paper

A number of large investors have recently modified their holdings of CLW. Meeder Asset Management Inc. acquired a new position in shares of Clearwater Paper during the fourth quarter worth approximately $47,000. Tower Research Capital LLC TRC boosted its position in Clearwater Paper by 34.7% in 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 during the last quarter. BNP Paribas Financial Markets boosted its position in Clearwater Paper by 608.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 6,585 shares of the basic materials company’s stock valued at $179,000 after buying an additional 5,656 shares during the last quarter. Caxton Associates LLP acquired a new stake in shares of Clearwater Paper in the 1st quarter valued at $204,000. Finally, Deutsche Bank AG increased its stake in shares of Clearwater Paper by 7.0% in the 4th quarter. Deutsche Bank AG now owns 12,319 shares of the basic materials company’s stock valued at $214,000 after buying an additional 802 shares during the period. 89.98% of the stock is currently owned by institutional investors and hedge funds.

About Clearwater Paper

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.