WestRock (WRK) Earnings Beat, Sales Miss Estimates In Q2
Zacks Investment Research | Apr 30, 2019 02:37AM ET
WestRock Company (NYSE:WRK) delivered second-quarter fiscal 2019 (ended Mar 31, 2019) adjusted earnings of 80 cents per share, surpassing the Zacks Consensus Estimate of 63 cents. However, the reported figure declined 3.6% from the 83 cents earned in the prior-year quarter.
Including one-time items, the company reported earnings per share of 62 cents in the reported quarter compared with the prior-year quarter’s 86 cents.
Operational Update
WestRock’s total revenues jumped 15% year over year to $4,620 million. However, the top-line figure missed the Zacks Consensus Estimate of $4,652 million.
The year-over-year improvement in total sales primarily stemmed from the increased sales in Corrugated Packaging segment, aided by the KapStone acquisition, higher selling price/mix and strength in the North American container business. However, the absence of recycling sales in the current-year quarter, lower containerboard volumes and unfavorable foreign currency impact offset sales to some extent.
Cost of sales increased 15.2%, year over year, to $3,720.4 million in the fiscal second quarter. Gross profit climbed 14% year over year to $900 million. Gross margin came in at 19.5% compared to the 19.6% recorded in the prior-year period. Adjusted segment EBITDA was $757 million compared with $649 million reported in the prior-year quarter.
Total segment income came in at $396 million, up from $373 million witnessed in the year-ago quarter. This upside was backed by increase in Corrugated Packaging segment income, along with decline in both Land and Development and Consumer Packaging segments’ income.
WestRock Company Price, Consensus and EPS Surprise
industry ’s loss of 29.7%.
Zacks Rank & Stocks to Consider
WestRock currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Sandstorm Gold Ltd. (NYSE:SAND) , Arconic Inc. (NYSE:ARNC) and Arch Coal Inc. (NYSE:ARCH) . While Sandstorm Gold sports a Zacks Rank #1 (Strong Buy), Arconic and Arch Coal carry a Zacks Rank #2 (Buy), at present. You can seeZacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.