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WestRock's (WRK) Q4 Earnings, Revenues Beat Estimates

WestRock Company WRK is a provider of paper and packaging solutions to consumer and corrugated markets.  WestRock was formed from the merger of MeadWestvaco Company and Rock-Tenn Company on Jul 1, 2015. WestRock is realizing the strategic benefits of the merger.

WestRock expects to exceed an $825 million run rate by the end of fiscal year 2017 and remains well on track to achieve its $1 billion target by the end of third-quarter fiscal 2018. The company’s productivity and performance improvement programs across its manufacturing footprint as well as its cost-saving actions remain tailwinds. WestRock's recent acquisitions to augment its corrugated packaging business will help it capitalize on the growing demand.

Let’s have a quick look at the fourth-quarter fiscal 2017 earnings release of the company.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for WestRock for the fiscal fourth quarter 2017 has moved south 5% over the past 30 days and currently stands at 81 cents. The earnings estimate for fiscal 2017 has also moved down 2% over the past 30 days and is currently pegged at $2.56.

Westrock Company Price and EPS Surprise
 

Westrock Company Price and EPS Surprise | Westrock Company Quote

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 11.8%.

Earnings

WestRock posted adjusted earnings of 87 cents per share in the fourth-quarter fiscal 2017, ahead of the Zacks Consensus Estimate of 81 cents. Adjusted earnings for fiscal 2017 came in at $2.62, also ahead of the Zacks Consensus Estimate of $2.56. Investors should note that these figures take out special items.

Revenue

WestRock posted revenues of $4.061 billion in the reported quarter, surpassing the Zacks Consensus Estimate of $3.925 billion. Revenues in fiscal 2017 were $14.86 billion, beating the Zacks Consensus Estimate of $14.72 billion.

Key Developments

WestRock stated that is has achieved $80 million in year-over-year productivity improvements in the quarter and a run rate of $840 million of synergy and performance improvements since the merger.

Zacks Rank

Currently, WestRock has a Zacks Rank #2 (Buy), but that could change following WestRock’s earnings report which was just released.

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’s earnings report later!

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