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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 sold its Home, Health and Beauty business to Silgan Holdings, Inc. (SLGN - Free Report) , 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.
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!
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WestRock's (WRK) Q2 Earnings, Revenues Beat Estimates
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 sold its Home, Health and Beauty business to Silgan Holdings, Inc. (SLGN - Free Report) , 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.
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 >>