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The Zacks Consensus Estimate for WRK’s fiscal first-quarter revenues is pegged at $4.84 billion, suggesting a fall of 1.75% from the year-ago quarter's reported figure. The same for earnings per share is pegged at 35 cents, indicating a year-over-year decline of 36%. The consensus mark for the company’s fiscal first-quarter earnings has remained unchanged in the past 30 days.
Q4 Performance
In the last reported quarter, WestRock registered year-over-year declines in adjusted earnings per share and revenues. While the top line missed the consensus estimate, earnings beat the same.
WRK’s earnings have surpassed the Zacks Consensus Estimate in three of the last four trailing quarters while falling short in one quarter, delivering an earnings surprise of 32.2%, on average.
WestRock has been witnessing a slowdown in volumes in the Corrugated Packaging segment over the past few quarters. This has been mainly due to muted customer spending due to the inflationary scenario. Customers have also been rebalancing their inventory destocking.
Despite this overall weakness, the demand for corrugated packaging and containerboard for the packaging of essential items such as food, beverage and medicines is likely to have been stable. However, considering that the company has been facing labor shortages and supply-chain issues, this is expected to have impacted the shipments to customers. Each of these factors are likely to have been reflected in the company’s top-line results in the first quarter of fiscal 2024.
While some costs were expected to have been favorable sequentially (natural gas, virgin fiber, chemicals and freight), the same is likely to have been higher than last year’s comparable quarter. Higher recycled fiber costs are also likely to have hurt the margins.
Pricing actions and productivity initiatives undertaken by the company are likely to have negated some of these headwinds and benefited its fiscal first-quarter performance.
Segmental Projections
The Zacks Consensus Estimate for WRK’s Consumer Packaging segment’s quarterly revenues is pegged at $1,194 million, suggesting a 2% drop from the prior-year period's reported figure. The segment’s adjusted EBITDA is estimated at $131 million.
For the Corrugated Packaging segment’s revenues, the consensus estimate is pinned at $2,461 million, implying growth of 10% from the year-ago quarter's reported number. The segment’s adjusted EBITDA is projected at $172 million.
The revenue estimate for the Paper segment is pegged at $895 million, suggesting a decline of 20% from the prior-year reported figure. The same for the Distribution segment is pinned at $339 million, indicating 5% year-over-year growth.
What the Zacks Model Unveils
Our proven model does not 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 chances of an earnings beat.
Earnings ESP: The Earnings ESP for WestRock is 0.00%. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Zacks Rank: WRK currently sports a Zacks Rank #1.
Price Performance
WestRock’s shares have gained 13.4% over the past year compared with the industry’s 6.4% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.
Southern Copper Corporation (SCCO - Free Report) , expected to release fourth-quarter 2023 earnings soon, presently has an Earnings ESP of +5.13% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Southern Copper’s fourth-quarter earnings has moved up 4% in the past 30 days. The consensus estimate for SCCO’s earnings for the quarter is pegged at 75 cents per share. It has an average trailing four-quarter earnings surprise of 11.1%.
Agnico Eagle Mines (AEM - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 15, currently has an Earnings ESP of +8.23% and a Zacks Rank of 3.
The consensus estimate for Agnico Eagle Mines’ earnings for the fourth quarter is pegged at 46 cents per share. Earnings estimates have moved 5% north in the past 30 days. It has an average trailing four-quarter earnings surprise of 9.9%.
Image: Bigstock
WestRock (WRK) to Report Q1 Earnings: What's in Store?
WestRock Company (WRK - Free Report) is scheduled to report first-quarter fiscal 2024 results (ended Dec 31, 2023) on Feb 1, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for WRK’s fiscal first-quarter revenues is pegged at $4.84 billion, suggesting a fall of 1.75% from the year-ago quarter's reported figure. The same for earnings per share is pegged at 35 cents, indicating a year-over-year decline of 36%. The consensus mark for the company’s fiscal first-quarter earnings has remained unchanged in the past 30 days.
Q4 Performance
In the last reported quarter, WestRock registered year-over-year declines in adjusted earnings per share and revenues. While the top line missed the consensus estimate, earnings beat the same.
WRK’s earnings have surpassed the Zacks Consensus Estimate in three of the last four trailing quarters while falling short in one quarter, delivering an earnings surprise of 32.2%, on average.
WestRock Company Price and EPS Surprise
WestRock Company price-eps-surprise | WestRock Company Quote
Key Factors to Note
WestRock has been witnessing a slowdown in volumes in the Corrugated Packaging segment over the past few quarters. This has been mainly due to muted customer spending due to the inflationary scenario. Customers have also been rebalancing their inventory destocking.
Despite this overall weakness, the demand for corrugated packaging and containerboard for the packaging of essential items such as food, beverage and medicines is likely to have been stable. However, considering that the company has been facing labor shortages and supply-chain issues, this is expected to have impacted the shipments to customers. Each of these factors are likely to have been reflected in the company’s top-line results in the first quarter of fiscal 2024.
While some costs were expected to have been favorable sequentially (natural gas, virgin fiber, chemicals and freight), the same is likely to have been higher than last year’s comparable quarter. Higher recycled fiber costs are also likely to have hurt the margins.
Pricing actions and productivity initiatives undertaken by the company are likely to have negated some of these headwinds and benefited its fiscal first-quarter performance.
Segmental Projections
The Zacks Consensus Estimate for WRK’s Consumer Packaging segment’s quarterly revenues is pegged at $1,194 million, suggesting a 2% drop from the prior-year period's reported figure. The segment’s adjusted EBITDA is estimated at $131 million.
For the Corrugated Packaging segment’s revenues, the consensus estimate is pinned at $2,461 million, implying growth of 10% from the year-ago quarter's reported number. The segment’s adjusted EBITDA is projected at $172 million.
The revenue estimate for the Paper segment is pegged at $895 million, suggesting a decline of 20% from the prior-year reported figure. The same for the Distribution segment is pinned at $339 million, indicating 5% year-over-year growth.
What the Zacks Model Unveils
Our proven model does not 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 chances of an earnings beat.
Earnings ESP: The Earnings ESP for WestRock is 0.00%. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Zacks Rank: WRK currently sports a Zacks Rank #1.
Price Performance
WestRock’s shares have gained 13.4% over the past year compared with the industry’s 6.4% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Eldorado Gold (EGO - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 22, currently has an Earnings ESP of +3.28% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.
Southern Copper Corporation (SCCO - Free Report) , expected to release fourth-quarter 2023 earnings soon, presently has an Earnings ESP of +5.13% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Southern Copper’s fourth-quarter earnings has moved up 4% in the past 30 days. The consensus estimate for SCCO’s earnings for the quarter is pegged at 75 cents per share. It has an average trailing four-quarter earnings surprise of 11.1%.
Agnico Eagle Mines (AEM - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 15, currently has an Earnings ESP of +8.23% and a Zacks Rank of 3.
The consensus estimate for Agnico Eagle Mines’ earnings for the fourth quarter is pegged at 46 cents per share. Earnings estimates have moved 5% north in the past 30 days. It has an average trailing four-quarter earnings surprise of 9.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.