WestRock's (WRK) Q2 Earnings, Revenues Beat Estimates
Zacks Investment Research | Apr 26, 2017 06:50AM ET
WestRock Company (NYSE: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 unrivalled provider of paper and packaging solutions in consumer and corrugated markets.
In line with its constant strategic focus on aligning its portfolio and resources around its core paper and packaging solutions businesses, WestRock has sold its Home, Health and Beauty business to Silgan Holdings, Inc. (NASDAQ:SLGN) , generating net proceeds of $1 billion from the sale. Earlier, the company divested its specialty chemicals business, Ingevity to better position the company to pursue its operating priorities and strategies.
The company is realizing the strategic benefits of the MeadWestvaco and Rock-Tenn merger, having already achieved an annual run rate of over $580 million in synergies and performance improvements. Moreover, the company stands to benefit from its investments in capacity, growth initiatives, joint venture with Grupo Gondi in Mexico and a shareholder-friendly capital allocation strategy. However, unfavorable foreign currency translation, merger related costs remain a concern.
Let’s have a quick look at the second-quarter fiscal 2017 earnings release of the company.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for WestRock for the fiscal second quarter 2017 has moved south over the past 60 days. The Zacks Consensus Estimate for the quarter has gone down 11% over the said timeframe and currently stands at 47 cents. Coming to the earnings surprise, WestRock posted a positive average earnings surprise of 9.84% in the last four trailing quarters.
Westrock Company Price and EPS Surprise
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