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Clearwater Paper Corporation (NYSE:CLW) shares have touched a 52-week low, dipping to $31.29 amidst market fluctuations. This latest price point reflects a notable decline for the company, which has experienced a -8.2% change over the past year. Investors are closely monitoring the stock as it navigates through the challenges within the paper products industry, assessing the potential for recovery or further downturns in the market. The 52-week low serves as a critical indicator for the company's performance and investor sentiment, as Clearwater Paper continues to strategize for future growth and stability.
In other recent news, Clearwater Paper has been the subject of several significant developments. The company recently reported an adjusted EBITDA of $35.3 million for Q2 2024, slightly below RBC Capital's forecast of $38.2 million. Despite this, RBC Capital has raised its price target for Clearwater Paper from $42 to $48, maintaining a Sector Perform rating.
Furthermore, Clearwater Paper announced the sale of its tissue unit to Sofidel America Corporation for a total of $1.06 billion, a strategic move to focus more on its paperboard operations. The transaction, subject to customary conditions including antitrust approvals, is expected to close in late 2024. The company anticipates net proceeds of around $850 million from the sale.
In addition, Clearwater Paper reported an adjusted EBITDA of $61.5 million for Q1 2024, surpassing RBC Capital Markets' estimate. The company also disclosed a $23 million investment in a new facial tissue converting line at its Shelby, North Carolina plant. These developments highlight Clearwater Paper's ongoing strategic moves and financial performance.
InvestingPro Insights
In light of Clearwater Paper Corporation's (CLW) recent descent to its 52-week low, a closer look at the company's financial health and market performance is warranted. According to InvestingPro data, CLW has a market capitalization of approximately $522.58 million and a P/E ratio of 11.97, which adjusts to a more attractive 8.14 when considering the last twelve months as of Q2 2024. Despite market volatility, the company's revenue growth for the quarter was positive at 11.78%, suggesting some operational momentum.
InvestingPro Tips indicate that management's aggressive share buyback activity could signal confidence in the company's value proposition. Additionally, the stock's RSI suggests it is in oversold territory, potentially presenting a buying opportunity for investors who believe in the company's fundamentals. It's also worth noting that analysts predict profitability for the company this year, which might provide some solace to investors concerned about recent price declines.
For those interested in deeper analysis, InvestingPro offers additional tips on Clearwater Paper Corporation, which could further inform investment decisions. As of now, there are 10 more InvestingPro Tips available, including insights into the company's free cash flow yield and gross profit margins.
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