WestRock Expected to Post Q3 2022 Earnings of $1.45 Per Share (NYSE:WRK)

WestRock (NYSE:WRKGet Rating) – Jefferies Financial Group lifted their Q3 2022 earnings per share (EPS) estimates for shares of WestRock in a report issued on Tuesday, May 10th. Jefferies Financial Group analyst P. Ng now expects that the basic materials company will post earnings per share of $1.45 for the quarter, up from their previous estimate of $1.30. Jefferies Financial Group also issued estimates for WestRock’s Q4 2022 earnings at $1.77 EPS, FY2022 earnings at $5.02 EPS and FY2023 earnings at $5.54 EPS.

WestRock (NYSE:WRKGet Rating) last released its quarterly earnings results on Thursday, May 5th. The basic materials company reported $1.17 EPS for the quarter, topping the consensus estimate of $1.01 by $0.16. WestRock had a return on equity of 9.32% and a net margin of 3.93%. The firm had revenue of $5.38 billion for the quarter, compared to analyst estimates of $5.08 billion. During the same period in the previous year, the company posted $0.54 EPS. WestRock’s revenue for the quarter was up 21.3% on a year-over-year basis.

A number of other equities analysts have also recently weighed in on the stock. KeyCorp decreased their price objective on shares of WestRock from $43.00 to $42.00 and set an “underweight” rating for the company in a research report on Friday, February 4th. Zacks Investment Research upgraded WestRock from a “sell” rating to a “buy” rating and set a $48.00 target price for the company in a research note on Thursday, January 13th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of WestRock from $52.00 to $59.00 and gave the stock a “hold” rating in a research note on Monday, April 18th. Bank of America lowered shares of WestRock from a “buy” rating to a “neutral” rating and cut their target price for the company from $60.00 to $57.00 in a research note on Thursday, January 20th. Finally, StockNews.com assumed coverage on WestRock in a research note on Thursday, March 31st. They issued a “buy” rating for the company. One research analyst has rated the stock with a sell rating, four have issued a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, WestRock has a consensus rating of “Hold” and a consensus target price of $53.13.

Shares of WRK stock opened at $47.46 on Friday. The firm has a fifty day simple moving average of $48.20 and a 200-day simple moving average of $46.68. The company has a market capitalization of $12.10 billion, a PE ratio of 16.03, a price-to-earnings-growth ratio of 0.48 and a beta of 0.99. WestRock has a twelve month low of $40.78 and a twelve month high of $62.03. The company has a current ratio of 1.53, a quick ratio of 0.96 and a debt-to-equity ratio of 0.69.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 24th. Stockholders of record on Thursday, May 12th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.11%. The ex-dividend date of this dividend is Wednesday, May 11th. WestRock’s payout ratio is 33.78%.

WestRock announced that its board has approved a share repurchase program on Thursday, May 5th that authorizes the company to buyback 25,000,000 outstanding shares. This buyback authorization authorizes the basic materials company to repurchase shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

In other WestRock news, insider Thomas Stigers sold 15,000 shares of the firm’s stock in a transaction on Monday, April 18th. The stock was sold at an average price of $50.10, for a total value of $751,500.00. Following the sale, the insider now directly owns 88,034 shares in the company, valued at $4,410,503.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 1.00% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Itau Unibanco Holding S.A. bought a new position in WestRock in the 4th quarter worth approximately $25,000. Allworth Financial LP grew its stake in shares of WestRock by 634.2% in the first quarter. Allworth Financial LP now owns 558 shares of the basic materials company’s stock worth $26,000 after purchasing an additional 482 shares in the last quarter. Core Alternative Capital acquired a new position in shares of WestRock during the first quarter valued at $30,000. Crewe Advisors LLC bought a new stake in shares of WestRock during the fourth quarter valued at about $31,000. Finally, First Horizon Advisors Inc. lifted its holdings in WestRock by 53.4% in the third quarter. First Horizon Advisors Inc. now owns 721 shares of the basic materials company’s stock worth $63,000 after purchasing an additional 251 shares during the period. 84.42% of the stock is currently owned by institutional investors.

About WestRock (Get Rating)

WestRock Company, together with its subsidiaries, provides fiber-based paper and packaging solutions in North America, South America, Europe, Asia, and Australia. It operates through two segments, Corrugated Packaging and Consumer Packaging. The Corrugated Packaging segment produces containerboards, corrugated sheets, corrugated packaging, and preprinted linerboards to consumer and industrial products manufacturers, and corrugated box manufacturers.

Further Reading

Earnings History and Estimates for WestRock (NYSE:WRK)

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