Zacks Investment Research downgraded
PH Glatfelter Co.
) to a Zacks Rank #5 (Strong Sell) on Apr 9, 2014. Going by the
Zacks model, companies holding a Zacks Rank #5 have strong
chances of underperforming the broader market.
GLATFELTER (GLT): Free Stock Analysis Report
KAPSTONE PAPER (KS): Free Stock Analysis
NEENAH PAPER (NP): Free Stock Analysis Report
DOMTAR CORP (UFS): Free Stock Analysis Report
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Why the Downgrade?
PH Glatfelter's fourth-quarter 2013 results failed to impress its
shareholders and as such its share price fell nearly 7.2% on Feb
13. To date, the company has not been able to regain its momentum
with its share price still down by 14.5% since the earnings
A snapshot of PH Glatfelter's results and outlook is provided
Adjusted earnings per share were 34 cents, lagging the Zacks
Consensus Estimate of 56 cents. However, bottom-line results
surpassed the year-ago earnings of 26 cents. Revenues in the
quarter increased 1.1% year over year to $435 million on the back
of healthy performances in the Composite Fibers and Advanced
Airlaid Materials segments. However, the Specialty Papers segment
reported weak results. Cost of sales increased 11.9%, while gross
margins plummeted 90 basis points.
In the last 60 days, the Zacks Consensus Estimate for PH
Glatfelter has decreased 14.2% to $1.87 for 2014 and by 5.0% to
$2.47 for 2015. Lowered earnings estimates as well as a negative
average earnings surprise of 1.7% have made us dubious about the
company's performance in the quarters ahead. Currently, the
company has an
of -16.67% for first-quarter 2014 and -3.74% for full-year 2014.
Other Stocks to Consider
PH Glatfelter presently has a market capitalization of $1.15
billion. Other stocks to watch out for in the industry include
KapStone Paper and Packaging Corporation
Neenah Paper, Inc.
), all of which hold a Zacks Rank #1 (Strong Buy).