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Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, 2024. Due to the timing of the merger, the company had stated that its second-quarter 2024 results pertained to Smurfit Kappa alone and not to WestRock. Results for the combined company will be reported from the third quarter, making the upcoming release the first for Smurfit Westrock as a unified company.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for SW’s revenues is pegged at $8.04 billion, indicating 61% growth from the year-ago quarter's figure. The estimate for earnings per share is pegged at 71 cents, indicating a year-over-year decline of 12%. The consensus mark for earnings has moved 7.8% down in the past 30 days.
Image Source: Zacks Investment Research
Factors Likely to Shape SW’s Q3 Results
Smurfit Westrock is expected to achieve adjusted annual revenues of $34 billion and adjusted EBITDA of $5.5 billion. Annual pre-tax run-rate synergies are expected to exceed $400 million. Corrugated, paper and other packaging are expected to account for around 85% of revenues and consumer packaging is anticipated to contribute the remaining 15%.
Industry participants have been facing declines in volumes due to lower spending on goods by customers, which mainly reflects the persisting inflationary scenario. Customers have also been lowering their inventory, which had built up in response to high demand and supply-chain issues. However, industry players have recently indicated that customer destocking is likely over.
Nevertheless, the demand for corrugated packaging and containerboard for the packaging of essential items, such as food, beverages and medicines, has been stable. Strong growth in e-commerce and rising demand for paper as a sustainable packaging solution have favored the industry. These trends are expected to reflect in Smurfit Westrock’s results.
However, some of these gains are likely to have been offset by higher recovered fiber, labor and distribution costs, mainly in Europe. This is expected to have hurt Smurfit Westrock’s margins. Pricing actions and cost-saving initiatives are likely to have negated some of these headwinds.
What the Zacks Model Unveils for Smurfit Westrock
Our proven model does not conclusively predict an earnings beat for Smurfit Westrock this time around. 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 is not the case here.
Earnings ESP: The Earnings ESP for Smurfit Westrock is +7.04%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: SW currently has a Zacks Rank #4 (Sell).
SW Stock’s Price Performance
Smurfit Westrock’s shares have lost 7.4% in the past month against the industry’s 10% growth.
Image Source: Zacks Investment Research
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for AEM’s earnings is currently pegged at 99 cents per share, which indicates year-over-year growth of 125%.
DuPont de Nemours, Inc. (DD - Free Report) , slated to release earnings on Nov. 5, has an Earnings ESP of +1.00% and a Zacks Rank of 2 at present.
The consensus mark for DD’s earnings is currently pegged at $1.03 per share. It indicates year-over-year growth of 12%.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release third-quarter earnings on Nov. 5, has an Earnings ESP of +12.25% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Kinross Gold's earnings is currently pegged at 17 cents per share. It indicates year over year growth of 41.7%.
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Smurfit Westrock to Report Q3 Earnings: Here's What to Expect
Smurfit Westrock PLC (SW - Free Report) is scheduled to report third-quarter fiscal 2024 results on Oct. 30, before market open.
Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, 2024. Due to the timing of the merger, the company had stated that its second-quarter 2024 results pertained to Smurfit Kappa alone and not to WestRock. Results for the combined company will be reported from the third quarter, making the upcoming release the first for Smurfit Westrock as a unified company.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for SW’s revenues is pegged at $8.04 billion, indicating 61% growth from the year-ago quarter's figure. The estimate for earnings per share is pegged at 71 cents, indicating a year-over-year decline of 12%. The consensus mark for earnings has moved 7.8% down in the past 30 days.
Image Source: Zacks Investment Research
Factors Likely to Shape SW’s Q3 Results
Smurfit Westrock is expected to achieve adjusted annual revenues of $34 billion and adjusted EBITDA of $5.5 billion. Annual pre-tax run-rate synergies are expected to exceed $400 million. Corrugated, paper and other packaging are expected to account for around 85% of revenues and consumer packaging is anticipated to contribute the remaining 15%.
Industry participants have been facing declines in volumes due to lower spending on goods by customers, which mainly reflects the persisting inflationary scenario. Customers have also been lowering their inventory, which had built up in response to high demand and supply-chain issues. However, industry players have recently indicated that customer destocking is likely over.
Nevertheless, the demand for corrugated packaging and containerboard for the packaging of essential items, such as food, beverages and medicines, has been stable. Strong growth in e-commerce and rising demand for paper as a sustainable packaging solution have favored the industry. These trends are expected to reflect in Smurfit Westrock’s results.
However, some of these gains are likely to have been offset by higher recovered fiber, labor and distribution costs, mainly in Europe. This is expected to have hurt Smurfit Westrock’s margins. Pricing actions and cost-saving initiatives are likely to have negated some of these headwinds.
What the Zacks Model Unveils for Smurfit Westrock
Our proven model does not conclusively predict an earnings beat for Smurfit Westrock this time around. 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 is not the case here.
Earnings ESP: The Earnings ESP for Smurfit Westrock is +7.04%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: SW currently has a Zacks Rank #4 (Sell).
SW Stock’s Price Performance
Smurfit Westrock’s shares have lost 7.4% in the past month against the industry’s 10% growth.
Image Source: Zacks Investment Research
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines Limited (AEM - Free Report) , scheduled to release earnings on Oct. 30, has an Earnings ESP of +4.34% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEM’s earnings is currently pegged at 99 cents per share, which indicates year-over-year growth of 125%.
DuPont de Nemours, Inc. (DD - Free Report) , slated to release earnings on Nov. 5, has an Earnings ESP of +1.00% and a Zacks Rank of 2 at present.
The consensus mark for DD’s earnings is currently pegged at $1.03 per share. It indicates year-over-year growth of 12%.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release third-quarter earnings on Nov. 5, has an Earnings ESP of +12.25% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Kinross Gold's earnings is currently pegged at 17 cents per share. It indicates year over year growth of 41.7%.