WestRock Company (WRK, $37.94) tops Q4 earnings expectations
WestRock Company posted earnings for its fourth quarter that surpassed the Street expectations.
The corrugated packaging company's adjusted earnings came in at $1.43 per share, above the $1.41 per share expected by analysts’ (according to Thomson Reuters compilation).
Revenue climbed +6.1% from the year-ago quarter to $5.40 billion. The company’s sales from Corrugated Packaging business rose +8% year over year to $2,386 million, while adjusted segment EBITDA increased +6% year over year to $384 million. The Consumer Packaging segment’s sales were up +12.7% year-over-year to $1,306 million, with adjusted segment EBITDA rising +10.7% year over year to $219 million. The Paper segment generated revenue of $1,429 million down -2.3% year over, with adjusted segment EBITDA slipping -0.3% year over year to $306 million. The Distribution business sales increased +7% year over year to $374 million, and the segment’s adjusted EBITDA rose +11% year over year to $26 million.
WRK in -1.62% downward trend, sliding for three consecutive days on April 16, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where WRK declined for three days, in of 285 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for WRK moved out of overbought territory on April 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on WRK as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for WRK turned negative on April 01, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WRK advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
WRK may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 235 cases where WRK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WRK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.249) is normal, around the industry mean (2.844). P/E Ratio (9.113) is within average values for comparable stocks, (26.161). Projected Growth (PEG Ratio) (2.472) is also within normal values, averaging (2.389). Dividend Yield (0.023) settles around the average of (0.034) among similar stocks. P/S Ratio (0.633) is also within normal values, averaging (11.437).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a paper & packaging company
Industry ContainersPackaging