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WestRock (WRK) Earnings Surpass Estimates in Q3, Up Y/Y
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WestRock Company (WRK - Free Report) reported adjusted earnings of $1.43 per share in fourth-quarter fiscal 2022 (ended Sep 30, 2022), beating the Zacks Consensus Estimate of $1.40. The bottom line marked year-over-year growth of 16%, driven by higher selling price/mix which was partly offset by cost inflation, higher operating costs and lower volumes.
Including one-time items, earnings were $1.34 per share compared with $1.20 per share reported in the prior-year quarter.
WestRock’s total revenues advanced 6% year over year to a record $5.4 billion but missed the Zacks Consensus Estimate of $5.5 billion.
The cost of sales was up 6% year over year to $4,341 million in the fiscal fourth quarter. Gross profit improved 6% year over year to $1,061 million. Adjusted segment EBITDA was a record $920 million compared with $878 million in the year-earlier quarter, driven by strength across all segments, barring Global Paper.
WestRock Company Price, Consensus and EPS Surprise
Sales in the Corrugated Packaging segment were up 8% year over year to $2,386 million during the quarter under review. Adjusted segment EBITDA increased 6% year over year to $384 million.
The Consumer Packaging segment reported sales of $1,306 million, up 12.7% year over year. Adjusted segment EBITDA rose 10.7% year over year to $219 million.
Sales in the Paper segment moved down 2.3% year over year to $1,429 million. Adjusted segment EBITDA dipped 0.3% year over year to $306 million.
The Distribution segment’s sales improved 7% year over year to $374 million. Adjusted segment EBITDA rose 11% year over year to $26 million.
Financial Position
WestRock had cash and cash equivalents of $260 million as of fiscal 2022’s end, compared with $291 million as of the end of fiscal 2021. The company reported total debt of $7.8 billion as of the end of fiscal 2022, down from $8.2 billion at the end of fiscal 2021.
Net cash provided by operating activities in fiscal 2022 was $2.02 billion compared with $2.28 billion in the prior fiscal. During fiscal 2022, WestRock spent $600 million on share repurchases and paid out $260 million as dividends.
The company hiked its dividend by 10%, to an annual payout of $1.10 per share.
Fiscal 2022 Performance
WRK reported adjusted earnings of $4.76 per share in fiscal 2022 which came in line with the Zacks Consensus Estimate. The bottom line surged 40% year over year. Including one-time items, earnings were $3.61 per share compared with $3.13 per share reported in the prior fiscal.
WestRock’s total revenues advanced 13.4% year over year to a record $21.2 billion but missed the Zacks Consensus Estimate of $21.3 billion.
Price Performance
Image Source: Zacks Investment Research
Shares of WestRock have fallen 29.6% in the past year compared with the industry’s decline of 17.9%.
Zacks Rank & Stocks to Consider
WestRock currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Commercial Metals Company (CMC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Albemarle, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 430.9% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 13% in a year.
Commercial Metals currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 36% in a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 23% in a year.
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WestRock (WRK) Earnings Surpass Estimates in Q3, Up Y/Y
WestRock Company (WRK - Free Report) reported adjusted earnings of $1.43 per share in fourth-quarter fiscal 2022 (ended Sep 30, 2022), beating the Zacks Consensus Estimate of $1.40. The bottom line marked year-over-year growth of 16%, driven by higher selling price/mix which was partly offset by cost inflation, higher operating costs and lower volumes.
Including one-time items, earnings were $1.34 per share compared with $1.20 per share reported in the prior-year quarter.
WestRock’s total revenues advanced 6% year over year to a record $5.4 billion but missed the Zacks Consensus Estimate of $5.5 billion.
The cost of sales was up 6% year over year to $4,341 million in the fiscal fourth quarter. Gross profit improved 6% year over year to $1,061 million. Adjusted segment EBITDA was a record $920 million compared with $878 million in the year-earlier quarter, driven by strength across all segments, barring Global Paper.
WestRock Company Price, Consensus and EPS Surprise
WestRock Company price-consensus-eps-surprise-chart | WestRock Company Quote
Segmental Performance
Sales in the Corrugated Packaging segment were up 8% year over year to $2,386 million during the quarter under review. Adjusted segment EBITDA increased 6% year over year to $384 million.
The Consumer Packaging segment reported sales of $1,306 million, up 12.7% year over year. Adjusted segment EBITDA rose 10.7% year over year to $219 million.
Sales in the Paper segment moved down 2.3% year over year to $1,429 million. Adjusted segment EBITDA dipped 0.3% year over year to $306 million.
The Distribution segment’s sales improved 7% year over year to $374 million. Adjusted segment EBITDA rose 11% year over year to $26 million.
Financial Position
WestRock had cash and cash equivalents of $260 million as of fiscal 2022’s end, compared with $291 million as of the end of fiscal 2021. The company reported total debt of $7.8 billion as of the end of fiscal 2022, down from $8.2 billion at the end of fiscal 2021.
Net cash provided by operating activities in fiscal 2022 was $2.02 billion compared with $2.28 billion in the prior fiscal. During fiscal 2022, WestRock spent $600 million on share repurchases and paid out $260 million as dividends.
The company hiked its dividend by 10%, to an annual payout of $1.10 per share.
Fiscal 2022 Performance
WRK reported adjusted earnings of $4.76 per share in fiscal 2022 which came in line with the Zacks Consensus Estimate. The bottom line surged 40% year over year. Including one-time items, earnings were $3.61 per share compared with $3.13 per share reported in the prior fiscal.
WestRock’s total revenues advanced 13.4% year over year to a record $21.2 billion but missed the Zacks Consensus Estimate of $21.3 billion.
Price Performance
Image Source: Zacks Investment Research
Shares of WestRock have fallen 29.6% in the past year compared with the industry’s decline of 17.9%.
Zacks Rank & Stocks to Consider
WestRock currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Commercial Metals Company (CMC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Albemarle, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 430.9% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 13% in a year.
Commercial Metals currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 36% in a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 23% in a year.