WestRock Company (WRK - Free Report) reported first-quarter fiscal 2017 (ended Dec 31, 2016) adjusted earnings of 47 cents per share beating the Zacks Consensus Estimate of 45 cents, by posting a positive earnings surprise of 4%.
Including one-time items, the company reported earnings of 32 cents per share in the quarter. This includes the impact of restructuring charges of 24 cents per share and one-time state tax benefit of 9 cents per share.
Operational Update
WestRock’s total revenue edged down 0.7 % year over year to $3,447 million. Moreover, revenues missed the Zacks Consensus Estimate of $3,479 million.
Cost of sales went up 1% year over year to $2,856 million in the quarter. Gross profit dropped 10% to $591 million. Gross margin expanded 170 basis points (bps) to 17.2% in the quarter. Adjusted operating income was $202 million compared with $266 million in the prior-year quarter. Adjusted operating margin was 5.9% in the quarter, down 180 bps year over year.
Segmental Performance
Corrugated Packaging: Sales at the segment improved 56% year over year to $1,944 million in the quarter. Adjusted segment EBITDA declined 12% year over year to $287 million.
Consumer Packaging: Sales at the segment dipped 2% to $1,511 million from the year-ago quarter. Adjusted segment EBITDA edged down 2% year over year to $215 million.
Land and Development: The segment’s sales were $54 million compared with $15 million in the prior-year quarter. Adjusted segment EBITDA for the segment was $1.9 million compared with $1.4 million in the prior-year quarter.
Westrock Company Price, Consensus and EPS Surprise
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WestRock Company (WRK - Free Report) reported first-quarter fiscal 2017 (ended Dec 31, 2016) adjusted earnings of 47 cents per share beating the Zacks Consensus Estimate of 45 cents, by posting a positive earnings surprise of 4%.
Including one-time items, the company reported earnings of 32 cents per share in the quarter. This includes the impact of restructuring charges of 24 cents per share and one-time state tax benefit of 9 cents per share.
Operational Update
WestRock’s total revenue edged down 0.7 % year over year to $3,447 million. Moreover, revenues missed the Zacks Consensus Estimate of $3,479 million.
Cost of sales went up 1% year over year to $2,856 million in the quarter. Gross profit dropped 10% to $591 million. Gross margin expanded 170 basis points (bps) to 17.2% in the quarter. Adjusted operating income was $202 million compared with $266 million in the prior-year quarter. Adjusted operating margin was 5.9% in the quarter, down 180 bps year over year.
Segmental Performance
Corrugated Packaging: Sales at the segment improved 56% year over year to $1,944 million in the quarter. Adjusted segment EBITDA declined 12% year over year to $287 million.
Consumer Packaging: Sales at the segment dipped 2% to $1,511 million from the year-ago quarter. Adjusted segment EBITDA edged down 2% year over year to $215 million.
Land and Development: The segment’s sales were $54 million compared with $15 million in the prior-year quarter. Adjusted segment EBITDA for the segment was $1.9 million compared with $1.4 million in the prior-year quarter.
Westrock Company Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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