Orchids Paper Products (NYSEMKT:TIS) announced earnings after the bell on Wednesday. During after hours trading TIS saw a drop of 8%. That sentiment continued after the opening bell on Thursday. The stock closed today losing 11.8%.
Here is a brief rundown of the first quarters results:
- Net sales decreased by 11%
- Net sales of converted product decreased by 16%
- Net sales of parent rolls increased by 32%
- Decrease in selling prices by 9%
- Decrease in tonnage shipping by 8%
- Gross profit decreased by 40%
- Earnings per share were 0.18 vs 0.42 for the same period in 2009
Here is my take after listening in on the conference call on Thursday:
Overall it was a bad January, but they have seen evidence of improvements since the March timeframe. The main reason for such disappointing results was a combination of increased input costs (cost of goods sold) and decreased output prices (selling price per tonnage). There was discussion on what caused the input costs to rise such as the earthquake in Chile, the rough weather in January, and the increased demand in China.
The reason for the decreased output prices were due to... continue reading.
Disclosure: Long TIS