WestRock (WRK) Tops Q4 Earnings, Synergy Targets In Line
Zacks Investment Research | Nov 07, 2016 04:04AM ET
WestRock Company (NYSE:WRK) reported fourth-quarter fiscal 2016 (ended Sep 30, 2016) adjusted earnings of 71 cents per share that beat the Zacks Consensus Estimate of 62 cents, posting a positive earnings surprise of 15%.
Including one-time items, the company reported a loss per share of 34 cents per share in the quarter resulting from a 91 cents per share non-cash charge related to the transfer of certain pension plan assets and liabilities to a third party.
Operational Update
WestRock’s total revenue slipped 0.1% year over year to $3.612 billion, outpacing the Zacks Consensus Estimate of $3,602 million.
Cost of sales dipped 1% year over year to $2,892 million in the quarter. Gross profit increased 5% to $719 million. Gross margin expanded 90 basis points to 19.9% in the quarter. Segment income was $330 million compared with $310 million in the prior-year quarter.
Segmental Performance
Corrugated Packaging: Sales at the segment improved 16% year over year to $2,004 million in the quarter. Segment income tanked 43% year over year to $192 million.
Consumer Packaging: Sales at the segment declined 20% to $1,622 million from the year-ago quarter. Segment income surged around 61% year over year to $139 million.
Land and Development: The segment’s sales were $43.7 million compared with $45 million in the prior-year quarter. Operating loss for the segment was $1.6 million compared with operating loss of $3.4 million in the prior-year quarter.
Fiscal 2016 Performance
For fiscal 2016, WestRock’s adjusted earnings per share came at $2.53, failing to match the Zacks Consensus Estimate of $2.56. Including one-time items, earnings for the fiscal was 59 cents.
Revenues came in at $14.2 billion, falling short of the Zacks Consesnus Estimate of $14.6 billion.
Financial Position
The company generated cash flow from operations of $381.6 million in the reported quarter compared with $387 million in the prior-year quarter. For the fiscal 2016, cash flow from operating activities was $1.7 billion compared with $1.2 billion in the prior fiscal year.
The company had $340.9 million in cash and cash equivalents at the end of fiscal 2016 compared with $207.8 million at fiscal 2015 end. The company’s total debt was $5,789 million at fiscal 2016 end compared with $5,621 million at fiscal 2015 end.
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