Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

WestRock's (WRK) Q2 Earnings, Revenues Beat Estimates

ByZacks Investment Research
Published 04/26/2017, 06:50 AM
Updated 07/09/2023, 06:31 AM

WestRock Company (NYSE:WRK) was formed from the merger of MeadWestvaco Company and Rock-Tenn Company on Jul 1, 2015. Headquartered in Norcross, GA, the company aspires to be the premier partner and unrivalled provider of paper and packaging solutions in consumer and corrugated markets.

In line with its constant strategic focus on aligning its portfolio and resources around its core paper and packaging solutions businesses, WestRock has sold its Home, Health and Beauty business to Silgan Holdings, Inc. (NASDAQ:SLGN) , generating net proceeds of $1 billion from the sale. Earlier, the company divested its specialty chemicals business, Ingevity to better position the company to pursue its operating priorities and strategies.

The company is realizing the strategic benefits of the MeadWestvaco and Rock-Tenn merger, having already achieved an annual run rate of over $580 million in synergies and performance improvements. Moreover, the company stands to benefit from its investments in capacity, growth initiatives, joint venture with Grupo Gondi in Mexico and a shareholder-friendly capital allocation strategy. However, unfavorable foreign currency translation, merger related costs remain a concern.

Let’s have a quick look at the second-quarter fiscal 2017 earnings release of the company.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for WestRock for the fiscal second quarter 2017 has moved south over the past 60 days. The Zacks Consensus Estimate for the quarter has gone down 11% over the said timeframe and currently stands at 47 cents. Coming to the earnings surprise, WestRock posted a positive average earnings surprise of 9.84% in the last four trailing quarters.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Westrock Company Price and EPS Surprise

Westrock Company Price and EPS Surprise | Westrock Company Quote

Earnings

WestRock posted adjusted earnings of 54 cents per share in the second-quarter fiscal 2017, ahead of the Zacks Consensus Estimate of 47 cents. Investors should note that these figures take out special items.

Revenue

WestRock posted revenues of $3.66 billion in the reported quarter, surpassing the Zacks Consensus Estimate of $3.55 billion.

Key Developments

WestRock stated that is has achieved $103 million in year-over-year productivity improvements and annual run rate of $675 million of synergy and performance improvements.

Zacks Rank

Currently, WestRock has a Zacks Rank #3 (Hold), but that could change following WestRock’s earnings report which was just released.

Market Reaction

WestRock’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this WestRock’s earnings report later!

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .


Silgan Holdings Inc. (SLGN): Free Stock Analysis Report

Westrock Company (WRK): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.