Smurfit Westrock PLC SW is scheduled to report fourth-quarter 2024 results on Feb. 12, before market open.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, 2024. The company started reporting results for the combined company from the third quarter of 2024.
The Zacks Consensus Estimate for SW’s revenues is pegged at $7.80 billion, indicating 68.8% growth from the year-ago quarter's reported figure. The estimate for earnings per share is pegged at 67 cents, indicating a year-over-year rise from 20 cents. The consensus mark for earnings has moved 6% down in the past 30 days.
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Factors Likely to Shape SW’s Q4 Results
In the third quarter of 2024, the company’s top line gained from increased corrugated volumes. Corrugated demand returned to growth in North America and Europe. This is expected to have boosted Smurfit Westrock’s fourth-quarter performance as well. The company is expected to deliver 2024 combined adjusted EBITDA of $4.7 billion.
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 get reflected 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. The merger-related costs are expected to have impacted the company’s fourth-quarter performance and disrupted the free cash flow margin. 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 -13.00%. 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
Shares of Smurfit WestRock have gained 2.6% in the past three months against the industry’s 1.8% fall.
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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:
DuPont de Nemours, Inc. DD, scheduled to release its fourth-quarter 2024 earnings on Feb. 11, has an Earnings ESP of +0.06% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DD’s fourth-quarter earnings is pegged at 98 cents. It has a trailing four-quarter average surprise of 12.9%.
Avient Corporation AVNT, ready to release earnings numbers on Feb. 13, currently has an Earnings ESP of +0.11% and a Zacks Rank #3.
The Zacks Consensus Estimate for AVNT’s fourth-quarter 2024 earnings is pegged at 48 cents. It has a trailing four-quarter average surprise of 7.4%.
Kinross Gold Corporation KGC, scheduled to release its fourth-quarter 2024 on Feb. 12, has an Earnings ESP of +17.02% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for KGC’s fourth-quarter 2024 earnings is pegged at 23 cents per share. It has a trailing four-quarter average surprise of 32.5%.
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Smurfit Westrock PLC (SW) : Free Stock Analysis Report
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