Clearwater Paper Q3 revenue slightly misses estimates on lower market pricing

Overview

• US paperboard supplier's Q3 revenue fell yr/yr, slightly missing analyst expectations

• Adjusted EBITDA rose yr/yr, driven by maintenance timing, partly offset by Augusta mill disruption

• Company completed full debt refinancing, meaningfully extending maturities

Outlook

• Company expects continued recovery in SBS industry conditions despite cost headwinds

• Clearwater Paper anticipates improved pricing later this qtr and into next yr

Result Drivers

• LOWER MARKET PRICING - Co said revenue decline was primarily driven by lower market pricing

• AUGUSTA MILL DISRUPTION - Volumes and costs were negatively affected by a significant operational disruption at Augusta mill, per CEO Arsen Kitch

• PRICE INCREASES - Average selling price improved vs Q2, driven by price increases and sales mix improvement, per CEO Arsen Kitch

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the paper products peer group is "buy."

• Wall Street's median 12-month price target for Clearwater Paper Corp is $21.00, about 8.9% above its October 23 closing price of $19.29

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)