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.
WestRock will benefit from the synergies from the merger, acquisitions and further share repurchases. The Ingevity spinoff will better position the company to pursue its operating priorities and strategies. Moreover, the company stands to benefit from its investments in capacity, growth initiatives, spin-off of the non-core Specialty business and a shareholder-friendly capital allocation strategy. However, unfavorable foreign currency translation remains a concern.
Let’s have a quick look at the third-quarter fiscal 2016 earnings release of the company.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for WestRock for the third quarter has remained stable over the past week and month. The Zacks Consensus Estimate for the quarter currently stands at 66 cents. Coming to the earnings surprise, WestRock posted a positive average earnings surprise of 7.12% in the last four trailing quarters.
Earnings
WestRock posted earnings of 71 cents per share in the third-quarter of 2016. Earnings handily beat the Zacks Consensus Estimate of 66 cents. Investors should note that these figures take out special items.
Revenue
WestRock posted revenues of $3.6 billion in the reported quarter, falling short of the Zacks Consensus Estimate of $3.7 billion.
Key Developments
WestRock stated that is has achieved $105 million in year-over-year productivity improvements and annual run rate of $425 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!
WESTROCK CO (WRK): Free Stock Analysis Report
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