WestRock (WRK) Misses Q2 EPS by 11c, Revenues Miss

WestRock (NYSE: WRK) reported Q2 EPS of $0.54, $0.11 worse than the analyst estimate of $0.65. Revenue for the quarter came in at $4.44 billion versus the consensus estimate of $4.54 billion.

Notable items include:

• Record second quarter North American per day box shipments up 5.5% compared to the prior year quarter
• Successfully implementing published PPW price increases across all major paper grades
• Quarterly dividend of $0.24 per share declared by Board of Directors, an increase of $0.04 per share, or 20%, as separately announced
• Net sales of $4.4 billion, flat to the prior year quarter despite $189 million of lost sales due to the impact of the ransomware incident and winter weather (“the Events”)
• Earned $0.42 per diluted share and $0.54 of Adjusted Earnings Per Diluted Share
• The lost sales and operational disruption from the Events had a negative impact of $80 million pre-tax, or $0.23 per share, on both earnings per diluted share and Adjusted Earnings Per Diluted Share

“WestRock has a broad portfolio of differentiated products that uniquely positions us to serve our customers and the growing demand for sustainable packaging solutions. We have made a remarkable recovery from the incidents in the second quarter, and I want to thank our teammates for their dedication to our company and our customers,” said David B. Sewell, chief executive officer. “With these events behind us, we are confident in our business and our ability to generate strong cash flow, which is evident by our dividend increase announced today. I look forward to what’s ahead for our company.”

For earnings history and earnings-related data on WestRock (WRK) click here.

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