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WestRock's (WRK) Q1 Earnings Tops, Revenues Miss Estimates

Zacks Equity Research
Updated

WestRock Company WRK is a provider of paper and packaging solutions to consumer and corrugated markets. The company reported first-quarter fiscal 2018 results, wherein adjusted earnings of 87 cents surpassed the Zacks Consensus Estimate of 75 cents.

 

Revenue: WestRock missed on the revenue front. It reported revenues of $3.89 billion in the fiscal first quarter, lagging the Zacks Consensus Estimate of $3.98 billion.

 

Outlook: WestRock stated that is has achieved $60 million in year-over-year productivity improvements in the quarter and a run rate of $910 million of synergy and performance improvements since its creation.

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Earnings Estimates Revision: Investors should note that the earnings estimate for WestRock for the fiscal first quarter has moved south 1% over the past 7 days and currently stands at 75 cents. Coming to the earnings surprise, WestRock has surpassed the Zacks Consensus Estimate in all the four trailing quarters, delivering an average positive earnings surprise of 10.03%.

Westrock Company Price and EPS Surprise
 

Westrock Company Price and EPS Surprise | Westrock Company Quote

Zacks Rank: Currently, WestRock has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.

Key Development: WestRock has signed a definitive agreement to acquire all of the outstanding shares of KapStone Paper and Packaging Corporation (KS) for $35.00 per share and will assume approximately $1.36 billion in net debt, for a total enterprise value of approximately $4.9 billion. Upon closing, the acquisition is expected to be immediately accretive to WestRock’s adjusted earnings and cash flow.

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 earnings report later!

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KapStone Paper and Packaging Corporation (KS) : Free Stock Analysis Report
 
Westrock Company (WRK) : Free Stock Analysis Report
 
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Zacks Investment Research