Overview

* Clearwater Paper ( CLW ) Q2 net sales rise 14% but miss analyst expectations, per LSEG data

* Net income from continuing operations reaches $4 mln, reversing a loss last year

* Adjusted EBITDA of $40 mln largely in line with analyst estimates, driven by cost reduction efforts

Outlook

* Company focuses on operational execution amid industry oversupply

* Clearwater Paper ( CLW ) aims to reduce fixed costs further

* Company prioritizes maintaining customer relationships during industry down cycle

Result Drivers

* AUGUSTA MILL ACQUISITION - Increased sales volume due to incremental volume from our acquisition of the Augusta, Georgia mill onMay1, 2024

* COST REDUCTION - Benefits from fixed cost reduction actions contributed to improved adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $392 mln $397 mln

(1

Analyst)

Q2 EPS $0.17

Q2 Net -$42 mln

Income

Q2 Meet $40 mln $40.10

Adjusted mln (1

EBITDA Analyst)

Analyst Coverage

* The one available analyst rating on the shares is "buy"

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

* Wall Street's median 12-month price target for Clearwater Paper Corp ( CLW ) is $37.00, about 20.3% above its July 28 closing price of $29.49

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(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.)