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Veritiv (VRTV) to Report Q4 Earnings: What's in Store?

Veritiv Corporation VRTV is scheduled to report fourth-quarter 2022 results, before the opening bell on Feb 28.

Q4 Estimates

The Zacks Consensus Estimate for Veritiv’s fourth-quarter earnings is pegged at $5.44, indicating growth of 48.2% from the year-ago quarter's reported figure. Earnings estimates have been unchanged over the past 30 days.

Q3 Performance

Veritiv reported year-over-year improvement in both revenues and earnings per share in the third quarter of 2022. Earnings in the quarter beat the Zacks Consensus Estimate. VRTV has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 31.3%.

Veritiv Corporation Price and EPS Surprise

 

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Veritiv Corporation price-eps-surprise | Veritiv Corporation Quote

Factors to Note

Veritiv has been witnessing strong organic sales growth, driven by a combination of above-market corrugated volume performance in the U.S. corrugated and flexible Packaging businesses, and the company’s growth-oriented initiatives within key industry verticals. This momentum has helped the company offset the impacts of lost sales from the divestiture of the Veritiv Canada business. This is likely to get reflected in its fourth-quarter results.

The company’s pricing actions have helped offset the impacts of inflationary market price increases, primarily in the Packaging and Print Solutions product portfolios. Also, despite ongoing constraints in the broader supply chain, Veritiv has been able to mitigate some of the impacts on its customers by leveraging its portfolio of suppliers and its North America supply-chain network. These efforts, combined with the company’s initiatives to improve commercial and operational efficiency, are expected to have aided its margins in the fourth quarter.

The Packaging segment has been benefiting from higher market prices and increased sales volume in all product categories and end-use sectors. Sales to manufacturing, healthcare, and food and beverage customers have shown improvement over the past few quarters. However, the lost volume associated with the divestiture of the Canada business is expected to have offset some of the gains.

In the Facility Solutions segment, the loss in net sales due to the divestiture of the Canada business is expected to have been offset by increased sales of towels and tissues, food service products, and can liners in the fourth quarter of 2022. Demand picked up in the entertainment and hospitality end-use sectors in 2022, as the away-from-home activity resumed following the Covid-related closures. This has been partially offset by weak demand for the personal protective equipment product category, which had experienced strong demand in 2021 due to COVID-19. Growth in the broader facility solutions away-from-home sectors is likely to have been offset by lower demand for personal protective equipment products through the fourth quarter of 2022.

The Print Solutions segment has seen higher market prices, driven by demand outpacing supply. This is likely to have been offset by decreased sales volume, as well as volume declines associated with the divestiture of the Canada business.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Veritiv this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Veritiv is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

 

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Shares of Veritiv have soared 35.7% over the past year against the industry's 18.4% decline.

Stocks Poised to Beat Estimates

Here are some stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:

International Game Technology IGT has an Earnings ESP of +20.00% and currently sports a Zacks Rank of 1. The company is scheduled to report its fourth-quarter 2022 results on Feb 28, before the market open.

The Zacks Consensus Estimate for IGT’s fourth-quarter 2022 earnings has moved up 6% in the past 30 days and is pegged at 33 cents per share. This suggests year-over-year growth of 267%. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.04 billion, indicating a year-over-year decline of 1%. IGT has a trailing four-quarter earnings surprise of 115.8%, on average.

Sempra Energy SRE currently has an Earnings ESP of +3.27% and a Zacks Rank of 3. It will report fourth-quarter results on Feb 28, before market open. The consensus estimate for Sempra Energy’s fourth-quarter earnings per share has moved up 2% over the past 30 days to $2.06. The estimate indicates a year-over-year decline of 4.6%.

The Zacks Consensus Estimate for SRE’s quarterly revenues is pegged at $3.81 billion, indicating a decline of 0.8% from the prior-year quarter’s reported level. SRE has a trailing four-quarter earnings surprise of 6.9%, on average.

Builders FirstSource BLDR currently has an Earnings ESP of +26.10% and a Zacks Rank of 3. It is scheduled to report fourth-quarter results on Feb 28. The Zacks Consensus Estimate for BLDR’s fourth-quarter earnings per share is pegged at $2.37, which indicates a year-over-year decline of 14.8%. The consensus estimate has moved up 4% over the past 30 days.

The Zacks Consensus Estimate for BLDR’s quarterly revenues is pegged at $4.23 billion, indicating a decline of 8.7% from the prior-year quarter’s reported level. BDLR has a trailing four-quarter earnings surprise of 71.1%, on average.

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