Rock-Tenn Earnings: Here’s Why the Stock is Falling Now
Rock-Tenn Co. (NYSE:RKT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.32%.
Rock-Tenn Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 15.46% to $1.12 in the quarter versus EPS of $0.97 in the year-earlier quarter.
Revenue: Rose 1.84% to $2.32 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Rock-Tenn Co. reported adjusted EPS income of $1.12 per share. By that measure, the company beat the mean analyst estimate of $1.02. It missed the average revenue estimate of $2.34 billion.
Quoting Management: RockTenn Chairman and Chief Executive Officer James A. Rubright stated, “RockTenn’s strong earnings growth over the prior year quarter reflects continued improvements in our operating performance and higher containerboard and box pricing. Our supply chain performed well managing constrained containerboard supply during the first half of our spring outage season and our box plants performance improved as we have consolidated our system and grown our sales and unit pricing in a relatively flat domestic market.”
Key Stats (on next page)…