WestRock Company (WRK - Free Report) reported fourth-quarter fiscal 2021 (ended Sep 30, 2021) adjusted earnings of $1.23 per share, reflecting year-over-year growth of 68%. The bottom line beat the Zacks Consensus Estimate of $1.14. This upside was driven by higher selling price/mix and improved volumes that helped negate the impact of inflated costs.
Including one-time items, earnings were $1.20 per share against a loss of $4.45 reported in the prior-year quarter.
Operational Update
WestRock’s total revenues advanced 14% year over year to a record $5.1 billion. The top line surpassed the consensus mark of $4.9 billion.
Cost of sales was up 12 % year on year to $4,093 million in the fiscal fourth quarter. Gross profit increased 23% year over year to $980 million. Adjusted segment EBITDA was $878 million compared with the $721 million in the year-earlier quarter. Total segment income was $526 million, up from the year-ago quarter’s $373 million.
Segmental Performance
Corrugated Packaging: Sales in the segment were up 17% year over year to $3,399 million during the quarter under review primarily on higher selling price/mix, higher volumes and favorable foreign-currency impacts. Adjusted segment EBITDA increased 18% year over year to $606 million as the impact of higher selling price/mix and higher volumes helped offset cost inflation and other items.
Consumer Packaging: Sales in the segment grew 10% year on year to $1,783 million. The upsurge can be attributed to higher selling price/mix, improved volumes and favorable impacts of foreign currency translation. Adjusted segment EBITDA climbed 28% year over year to $284 million. Gains from higher selling price/mix, productivity improvements, lower economic downtime compared to the prior-year period and higher volumes were partially offset by net cost inflation and other items.
Fiscal 2021 Results
WestRock reported fiscal 2021 adjusted earnings of $3.39 per share, which marked a 23% improvement from earnings of $2.75 per share in the prior fiscal. The bottom line figure beat the Zacks Consensus Estimate of $3.29. Including one-time items, earnings were $3.13 per share compared against a loss of $2.67 reported in the fiscal 2020. Total revenues improved 7% year over year to a record $18.7 billion and surpassed the consensus mark of $18.6 billion.
Financial Position
WestRock had cash and cash equivalents of $291 million as of Sep 30, 2021, up from $251 million reported as of Sep 30, 2020. The company reported total debt of $8.2 billion as of fiscal 2021-end, down from $9.43 billion as of the end of fiscal 2020.
Net cash provided by operating activities in fiscal 2021 was $2.28 billion compared with the $2.07 billion recorded in the prior year. During the fiscal fourth quarter, WestRock invested $310 million in capital expenditures, spent $122 million on share repurchases and paid out $64 million in dividends to shareholders.
Price Performance
Shares of WestRock have appreciated 17.7% over the past year, compared with the industry’s growth of 19.9%.
Zacks Rank & Stocks to Consider
WestRock currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Commercial Metals Company (CMC - Free Report) , Nucor Corporation (NUE - Free Report) and Huntsman Corporation (HUN - Free Report) . All of these stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals has an expected earnings growth rate of 3.7% for the current year. The company’s shares have gained 69% in the past year.
Nucor has a projected earnings growth rate of 585% for the current year. The company’s shares have soared 124% in a year’s time.
Huntsman has an expected earnings growth rate of 254% for the current fiscal year. The company’s shares have surged 36% in the past year.
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WestRock Company (WRK - Free Report) reported fourth-quarter fiscal 2021 (ended Sep 30, 2021) adjusted earnings of $1.23 per share, reflecting year-over-year growth of 68%. The bottom line beat the Zacks Consensus Estimate of $1.14. This upside was driven by higher selling price/mix and improved volumes that helped negate the impact of inflated costs.
Including one-time items, earnings were $1.20 per share against a loss of $4.45 reported in the prior-year quarter.
Operational Update
WestRock’s total revenues advanced 14% year over year to a record $5.1 billion. The top line surpassed the consensus mark of $4.9 billion.
Cost of sales was up 12 % year on year to $4,093 million in the fiscal fourth quarter. Gross profit increased 23% year over year to $980 million. Adjusted segment EBITDA was $878 million compared with the $721 million in the year-earlier quarter. Total segment income was $526 million, up from the year-ago quarter’s $373 million.
Segmental Performance
Corrugated Packaging: Sales in the segment were up 17% year over year to $3,399 million during the quarter under review primarily on higher selling price/mix, higher volumes and favorable foreign-currency impacts. Adjusted segment EBITDA increased 18% year over year to $606 million as the impact of higher selling price/mix and higher volumes helped offset cost inflation and other items.
Consumer Packaging: Sales in the segment grew 10% year on year to $1,783 million. The upsurge can be attributed to higher selling price/mix, improved volumes and favorable impacts of foreign currency translation. Adjusted segment EBITDA climbed 28% year over year to $284 million. Gains from higher selling price/mix, productivity improvements, lower economic downtime compared to the prior-year period and higher volumes were partially offset by net cost inflation and other items.
Fiscal 2021 Results
WestRock reported fiscal 2021 adjusted earnings of $3.39 per share, which marked a 23% improvement from earnings of $2.75 per share in the prior fiscal. The bottom line figure beat the Zacks Consensus Estimate of $3.29. Including one-time items, earnings were $3.13 per share compared against a loss of $2.67 reported in the fiscal 2020. Total revenues improved 7% year over year to a record $18.7 billion and surpassed the consensus mark of $18.6 billion.
Financial Position
WestRock had cash and cash equivalents of $291 million as of Sep 30, 2021, up from $251 million reported as of Sep 30, 2020. The company reported total debt of $8.2 billion as of fiscal 2021-end, down from $9.43 billion as of the end of fiscal 2020.
Net cash provided by operating activities in fiscal 2021 was $2.28 billion compared with the $2.07 billion recorded in the prior year. During the fiscal fourth quarter, WestRock invested $310 million in capital expenditures, spent $122 million on share repurchases and paid out $64 million in dividends to shareholders.
Price Performance
Shares of WestRock have appreciated 17.7% over the past year, compared with the industry’s growth of 19.9%.
Zacks Rank & Stocks to Consider
WestRock currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Commercial Metals Company (CMC - Free Report) , Nucor Corporation (NUE - Free Report) and Huntsman Corporation (HUN - Free Report) . All of these stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals has an expected earnings growth rate of 3.7% for the current year. The company’s shares have gained 69% in the past year.
Nucor has a projected earnings growth rate of 585% for the current year. The company’s shares have soared 124% in a year’s time.
Huntsman has an expected earnings growth rate of 254% for the current fiscal year. The company’s shares have surged 36% in the past year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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