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WestRock's (WRK) Q2 Earnings Beat, Sales in Line

WestRock Company WRK was formed from the merger of MeadWestvaco Company and Rock-Tenn Company on Jul 1, 2015. Headquartered in Norcross, GA, the company aspires to be the premier partner and unrivaled provider of paper and packaging solutions in consumer and corrugated markets.

WestRock will benefit from the synergies from the merger, acquisitions and further share repurchases. The Ingevity spinoff will better position the company to pursue its operating priorities and strategies. Moreover, the company stands to benefit from its investments in capacity, growth initiatives, spin-off of the non-core Specialty business and a shareholder-friendly capital allocation strategy. However, unfavorable foreign currency translation remains a concern.

Let’s have a quick look at the second-quarter fiscal 2016 earnings release of the company.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for WestRock for the second quarter witnessed an uptrend over the past week and month. The Zacks Consensus Estimate for the quarter currently stands at 53 cents. Coming to the earnings surprise, WestRock posted a positive average earnings surprise of 3.34% in the last four trailing quarters.

Earnings

WestRock posted earnings of 61 cents per share in the second-quarter of 2016. Earnings surpassed the Zacks Consensus Estimate of 53 cents. Investors should note that these figures take out special items.

Revenue

WestRock posted revenues of $3.7 billion in the reported quarter, in line with the Zacks Consensus Estimate.

Key Stats To Note

WestRock affirmed its free cash flow guidance range of $950 million to $1 billion for fiscal 2016.

Zacks Rank

Currently, WestRock has a Zacks Rank #3 (Hold), but that could change following WestRock’s earnings report which was just released.

Market Reaction

WestRock’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this WestRock’s earnings report later!

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WESTROCK CO (WRK): Free Stock Analysis Report
 
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