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WestRock Company (WRK - Free Report) 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 agreed to sell its Home, Health and Beauty business to Silgan Holdings, Inc. (SLGN - Free Report) . WestRock expects to receive net proceeds $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.
WestRock will also benefit from the synergies from the merger, acquisitions and further share repurchases. 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 first-quarter fiscal 2017 earnings release of the company.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for WestRock for the fiscal first quarter 2017 has moved south over the past month. The Zacks Consensus Estimate for the quarter has gone down 15% over the past 30 days and currently stands at 45 cents. Coming to the earnings surprise, WestRock posted a positive average earnings surprise of 9.73% in the last four trailing quarters.
WestRock posted adjusted earnings of 47 cents per share in the first-quarter fiscal 2017, ahead of the Zacks Consensus Estimate of 45 cents. Investors should note that these figures take out special items.
Revenue
WestRock posted revenues of $3,447 million in the reported quarter, falling short of the Zacks Consensus Estimate of $3,479 million.
Key Developments
WestRock stated that is has achieved $85 million in year-over-year productivity improvements and annual run rate of $580 million of synergy and performance improvements.
WestRock also announced that it will acquire Multi Packaging Solutions International Limited , a global leader in value-added print and packaging solutions for the branded consumer, healthcare, and multi-media markets for $18 per share.
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!
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WestRock's (WRK) Q1 Earnings Beats, Revenues Lag
WestRock Company (WRK - Free Report) 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 agreed to sell its Home, Health and Beauty business to Silgan Holdings, Inc. (SLGN - Free Report) . WestRock expects to receive net proceeds $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.
WestRock will also benefit from the synergies from the merger, acquisitions and further share repurchases. 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 first-quarter fiscal 2017 earnings release of the company.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for WestRock for the fiscal first quarter 2017 has moved south over the past month. The Zacks Consensus Estimate for the quarter has gone down 15% over the past 30 days and currently stands at 45 cents. Coming to the earnings surprise, WestRock posted a positive average earnings surprise of 9.73% in the last four trailing quarters.
Westrock Company Price and EPS Surprise
Westrock Company Price and EPS Surprise | Westrock Company Quote
Earnings
WestRock posted adjusted earnings of 47 cents per share in the first-quarter fiscal 2017, ahead of the Zacks Consensus Estimate of 45 cents. Investors should note that these figures take out special items.
Revenue
WestRock posted revenues of $3,447 million in the reported quarter, falling short of the Zacks Consensus Estimate of $3,479 million.
Key Developments
WestRock stated that is has achieved $85 million in year-over-year productivity improvements and annual run rate of $580 million of synergy and performance improvements.
WestRock also announced that it will acquire Multi Packaging Solutions International Limited , a global leader in value-added print and packaging solutions for the branded consumer, healthcare, and multi-media markets for $18 per share.
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' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>