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Paper Stocks Queued Up for Earnings on Aug 4: WRK, RFP
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The paper and related products industry falls under the Basic Materials sector – one of the 16 broad Zacks sectors. The 65% of the companies in this sector that have reported so far put up a 5.9% fall in earnings on the scoreboard. Considering the companies that are yet to report, the sector’s earnings are expected to drop 10.6% in the quarter.
However, it is not the only sector to suffer an earnings decline this quarter. Earnings growth is anticipated to be in negative territory for 9 of the 16 Zacks sectors, with Energy being the biggest laggard. Looking at the projected estimates for the quarter, total S&P 500 earnings are expected to be down 3.4% on the back of a 0.4% dip in revenues. It seems the quarter is on track to be the fifth in a row to suffer an earnings decline (read more: Q2 Earnings Trends Already Established?).
The world’s largest paper and pulp maker – International Paper Company (IP - Free Report) – delivered a robust second quarter with earnings per share of 92 cents, driven by seasonably stronger volume and good operational performance, comprehensively beating estimates. For the third quarter, volume is expected to be mostly stable across the businesses. Price for the quarter is expected to be lower in North-American industrial packaging. Earnings are also expected to be hurt by a less favorable mix in the pulp business. Operations are anticipated to continue to perform well and input costs – particularly energy and OCC in North America – are expected to be higher in the third quarter by roughly $35 million.
With this in the backdrop, investors would be interested to see how other paper stocks fare in their upcoming releases. Apart from beats and misses, focus will be on management outlook as well.
A global leading provider of packaging solutions and manufacturers of containerboard and paperboard – WestRock Company (WRK - Free Report) – is slated to report third-quarter fiscal 2016 results on Aug 4, before the market opens.
WestRock should continue to benefit from its acquisitions, investment in capacity, growth initiatives and the spin-off of the non-core Specialty business. The combination of the company’s Zacks Rank #3 and Earnings ESP of +1.52% makes an earnings beat likely this quarter (read more: Can WestRock Maintain Earnings Streak in Q3?).
Last quarter, the company had delivered a positive earnings surprise of 15.09%. WestRock outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 7.12%.
Resolute Forest Products Inc. operates in the forest products industry in the United States, Canada, and South Korea and will report second-quarter 2016 results on Aug 4.
The company will benefit from price increases, efforts to develop its new tissue segment, achievement of full potential of the Calhoun continuous digester and increased hardwood market pulp production, which will also lower cost and enhance productivity at the Atikokan and Ignace sawmills. Resolute Forest Products has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%, which make surprise prediction difficult.
The company delivered a 13.04% positive earnings surprise last quarter. The company has outpaced the Zacks Consensus Estimate in 3 of the 4 trailing quarters, with an average positive earnings surprise of 30.07%.
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Paper Stocks Queued Up for Earnings on Aug 4: WRK, RFP
The paper and related products industry falls under the Basic Materials sector – one of the 16 broad Zacks sectors. The 65% of the companies in this sector that have reported so far put up a 5.9% fall in earnings on the scoreboard. Considering the companies that are yet to report, the sector’s earnings are expected to drop 10.6% in the quarter.
However, it is not the only sector to suffer an earnings decline this quarter. Earnings growth is anticipated to be in negative territory for 9 of the 16 Zacks sectors, with Energy being the biggest laggard. Looking at the projected estimates for the quarter, total S&P 500 earnings are expected to be down 3.4% on the back of a 0.4% dip in revenues. It seems the quarter is on track to be the fifth in a row to suffer an earnings decline (read more: Q2 Earnings Trends Already Established?).
The world’s largest paper and pulp maker – International Paper Company (IP - Free Report) – delivered a robust second quarter with earnings per share of 92 cents, driven by seasonably stronger volume and good operational performance, comprehensively beating estimates. For the third quarter, volume is expected to be mostly stable across the businesses. Price for the quarter is expected to be lower in North-American industrial packaging. Earnings are also expected to be hurt by a less favorable mix in the pulp business. Operations are anticipated to continue to perform well and input costs – particularly energy and OCC in North America – are expected to be higher in the third quarter by roughly $35 million.
With this in the backdrop, investors would be interested to see how other paper stocks fare in their upcoming releases. Apart from beats and misses, focus will be on management outlook as well.
A global leading provider of packaging solutions and manufacturers of containerboard and paperboard – WestRock Company (WRK - Free Report) – is slated to report third-quarter fiscal 2016 results on Aug 4, before the market opens.
WestRock should continue to benefit from its acquisitions, investment in capacity, growth initiatives and the spin-off of the non-core Specialty business. The combination of the company’s Zacks Rank #3 and Earnings ESP of +1.52% makes an earnings beat likely this quarter (read more: Can WestRock Maintain Earnings Streak in Q3?).
WESTROCK CO Price and EPS Surprise
WESTROCK CO Price and EPS Surprise | WESTROCK CO Quote
Last quarter, the company had delivered a positive earnings surprise of 15.09%. WestRock outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 7.12%.
Resolute Forest Products Inc. operates in the forest products industry in the United States, Canada, and South Korea and will report second-quarter 2016 results on Aug 4.
The company will benefit from price increases, efforts to develop its new tissue segment, achievement of full potential of the Calhoun continuous digester and increased hardwood market pulp production, which will also lower cost and enhance productivity at the Atikokan and Ignace sawmills. Resolute Forest Products has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%, which make surprise prediction difficult.
RESOLUTE FOREST Price and EPS Surprise
RESOLUTE FOREST Price and EPS Surprise | RESOLUTE FOREST Quote
The company delivered a 13.04% positive earnings surprise last quarter. The company has outpaced the Zacks Consensus Estimate in 3 of the 4 trailing quarters, with an average positive earnings surprise of 30.07%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>