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The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $5.48 billion, suggesting growth of 7.7% from the year-ago quarter. The same for earnings per share is pegged at $1.40, indicating a year-over-year improvement of 13.8%. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings has moved down 1% in the past 30 days.
Q3 Performance
In the last reported quarter, WestRock delivered year-over-year improvement in both adjusted earnings per share and revenues. While revenues came in line with the Zacks Consensus Estimate, earnings beat the same. WRK’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering a positive earnings surprise of 7.4%, on average.
WestRock has been witnessing solid demand for its products and solutions in key end markets for the past few quarters. It has been focused on partnering with customers to fulfill their growing demand for sustainable, fiber-based packaging solutions. E-commerce demand remains strong across all channels, primarily during the pandemic. These factors are likely to have driven fiscal fourth-quarter performance.
Solid demand for corrugated packaging, containerboard, food and beverage consumer packaging and industrial packaging might have contributed to growth. However, demand might have been impacted in some of its markets owing to weak customer spending.
Labor shortages and supply-chain issues have been disrupting production and impacting shipments to customers. Higher Old Corrugated Containers (OCC) costs as well as elevated energy, freight and chemicals costs as well as planned maintenance downtime are likely to hurt margins in the fiscal fourth quarter.
In the fiscal third quarter of 2022, WestRock implemented a series of additional paperboard price increases in the range of $50 to $100 per ton, which are expected to have offset some of these headwinds.
WestRock acquired KapStone Paper and Packaging Corp in 2019, with the integration on track. The buyout helped the company cement its presence in the Western United States. The company continues to boost its North American corrugated packaging business margins.
These moves are likely to have contributed to its performance in the quarter under review. Productivity, price increase actions, performance-improvement programs across its manufacturing footprint and cost savings may have favored the company’s fiscal third-quarter performance.
Also, the company shut down operations at its containerboard and pulp mill located in Panama City, FL, in the quarter to be reported. WRK is expected to have recorded expenses associated with the closure, which may have impacted margins.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for WestRock this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for WestRock is -0.24%.
Zacks Rank: WestRock currently carries a Zacks Rank #4 (Sell).
Share Price Performance
Image Source: Zacks Investment Research
WestRock’s shares have lost 14.8% over the past three months, compared with the industry’s decline of 6.5%.
Stocks Poised to Beat Estimates
Here are some stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases . Perpetua Resources (PPTA - Free Report) , expected to release earnings on Nov 11, has an Earnings ESP of +50% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Perpetua Resources’ third-quarter earnings has moved up from a loss of 12 cents per share to 8 cents per share in the past 60 days. The Zacks Consensus Estimate for PPTA’s earnings for the quarter is pegged at a loss of 8 cents per share. PPTA has a trailing four-quarter positive earnings surprise of 5.4%, on average.
MAG Silver (MAG - Free Report) ), expected to release earnings on Nov 21, has an Earnings ESP of +18.18% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for MAG Silver’s third-quarter earnings has been revised 27% downward in the past 60 days. The consensus estimate for MAG’s earnings for the quarter is currently pegged at 11 cents, suggesting a turnaround performance from the loss of 2 cents per share reported in the prior-year comparable quarter.
Plug Power Inc. (PLUG - Free Report) , slated to release earnings on Nov 8, has an Earnings ESP of +1.08%.
The Zacks Consensus Estimate for Plug Power’s third-quarter earnings is currently pegged at a loss of 25 cents. PLUG currently carries a Zacks Rank #3.
Image: Bigstock
Factors Setting the Tone for WestRock's (WRK) Q4 Earnings
WestRock Company (WRK - Free Report) is scheduled to report fourth-quarter fiscal 2022 results (ended on Sep 30, 2022) on Nov 10, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $5.48 billion, suggesting growth of 7.7% from the year-ago quarter. The same for earnings per share is pegged at $1.40, indicating a year-over-year improvement of 13.8%. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings has moved down 1% in the past 30 days.
Q3 Performance
In the last reported quarter, WestRock delivered year-over-year improvement in both adjusted earnings per share and revenues. While revenues came in line with the Zacks Consensus Estimate, earnings beat the same. WRK’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering a positive earnings surprise of 7.4%, on average.
WestRock Company Price and EPS Surprise
WestRock Company price-eps-surprise | WestRock Company Quote
Key Factors to Note
WestRock has been witnessing solid demand for its products and solutions in key end markets for the past few quarters. It has been focused on partnering with customers to fulfill their growing demand for sustainable, fiber-based packaging solutions. E-commerce demand remains strong across all channels, primarily during the pandemic. These factors are likely to have driven fiscal fourth-quarter performance.
Solid demand for corrugated packaging, containerboard, food and beverage consumer packaging and industrial packaging might have contributed to growth. However, demand might have been impacted in some of its markets owing to weak customer spending.
Labor shortages and supply-chain issues have been disrupting production and impacting shipments to customers. Higher Old Corrugated Containers (OCC) costs as well as elevated energy, freight and chemicals costs as well as planned maintenance downtime are likely to hurt margins in the fiscal fourth quarter.
In the fiscal third quarter of 2022, WestRock implemented a series of additional paperboard price increases in the range of $50 to $100 per ton, which are expected to have offset some of these headwinds.
WestRock acquired KapStone Paper and Packaging Corp in 2019, with the integration on track. The buyout helped the company cement its presence in the Western United States. The company continues to boost its North American corrugated packaging business margins.
These moves are likely to have contributed to its performance in the quarter under review. Productivity, price increase actions, performance-improvement programs across its manufacturing footprint and cost savings may have favored the company’s fiscal third-quarter performance.
Also, the company shut down operations at its containerboard and pulp mill located in Panama City, FL, in the quarter to be reported. WRK is expected to have recorded expenses associated with the closure, which may have impacted margins.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for WestRock this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for WestRock is -0.24%.
Zacks Rank: WestRock currently carries a Zacks Rank #4 (Sell).
Share Price Performance
Image Source: Zacks Investment Research
WestRock’s shares have lost 14.8% over the past three months, compared with the industry’s decline of 6.5%.
Stocks Poised to Beat Estimates
Here are some stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases
.
Perpetua Resources (PPTA - Free Report) , expected to release earnings on Nov 11, has an Earnings ESP of +50% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Perpetua Resources’ third-quarter earnings has moved up from a loss of 12 cents per share to 8 cents per share in the past 60 days. The Zacks Consensus Estimate for PPTA’s earnings for the quarter is pegged at a loss of 8 cents per share. PPTA has a trailing four-quarter positive earnings surprise of 5.4%, on average.
MAG Silver (MAG - Free Report) ), expected to release earnings on Nov 21, has an Earnings ESP of +18.18% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for MAG Silver’s third-quarter earnings has been revised 27% downward in the past 60 days. The consensus estimate for MAG’s earnings for the quarter is currently pegged at 11 cents, suggesting a turnaround performance from the loss of 2 cents per share reported in the prior-year comparable quarter.
Plug Power Inc. (PLUG - Free Report) , slated to release earnings on Nov 8, has an Earnings ESP of +1.08%.
The Zacks Consensus Estimate for Plug Power’s third-quarter earnings is currently pegged at a loss of 25 cents. PLUG currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.