Rock-Tenn Meets on Revenues, Misses on EPS
Rock-Tenn (NYS: RKT) reported earnings on Aug. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q3), Rock-Tenn met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Gross margins contracted, operating margins shrank, and net margins grew.
Rock-Tenn logged revenue of $2.30 billion. The nine analysts polled by S&P Capital IQ anticipated revenue of $2.31 billion on the same basis. GAAP reported sales were 67% higher than the prior-year quarter's $1.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.95. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.02 per share. GAAP EPS were $0.81 for Q3 versus -$0.60 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.6%, 380 basis points worse than the prior-year quarter. Operating margin was 5.7%, 320 basis points worse than the prior-year quarter. Net margin was 2.5%, 470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.45 billion. On the bottom line, the average EPS estimate is $1.34.
Next year's average estimate for revenue is $9.30 billion. The average EPS estimate is $4.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 184 members out of 196 rating the stock outperform, and 12 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Rock-Tenn a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rock-Tenn is outperform, with an average price target of $73.64.
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The article Rock-Tenn Meets on Revenues, Misses on EPS originally appeared on Fool.com.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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