Rock-Tenn Increases Sales but Misses Revenue Estimate
Rock-Tenn (NYS: RKT) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Rock-Tenn missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share contracted significantly.
Margins contracted across the board.
Rock-Tenn logged revenue of $2.3 billion. The nine analysts polled by S&P Capital IQ foresaw revenue of $2.3 billion. Sales were much higher than the prior-year quarter's $761 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.18. The 10 earnings estimates compiled by S&P Capital IQ averaged $1.39 per share on the same basis. GAAP EPS of $1.06 for Q1 were 17% lower than the prior-year quarter's $1.27 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 17.3%, 620 basis points worse than the prior-year quarter. Operating margin was 7.3%, 530 basis points worse than the prior-year quarter. Net margin was 3.4%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.4 billion. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $9.7 billion. The average EPS estimate is $6.38.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rock-Tenn is outperform, with an average price target of $75.80.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Rock-Tenn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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