Core Viewpoint - Smurfit Westrock PLC is set to report its fourth-quarter 2024 results on February 12, 2024, with expectations of significant revenue growth driven by increased demand for corrugated packaging [1][4]. Financial Performance - The Zacks Consensus Estimate for Smurfit Westrock's revenues is $7.80 billion, reflecting a 68.8% increase compared to the same quarter last year [3]. - The earnings per share estimate stands at 67 cents, up from 20 cents year-over-year [3]. - The consensus earnings estimate has decreased by 6% over the past 30 days [3]. Market Trends - The company has benefited from a resurgence in corrugated demand in North America and Europe, which is anticipated to positively influence fourth-quarter performance [4]. - Stable demand for corrugated packaging and containerboard, particularly for essential items like food and medicines, has supported the industry [5]. - Growth in e-commerce and the rising preference for paper as a sustainable packaging solution are also favorable trends for Smurfit Westrock [5]. Cost Factors - Increased costs related to recovered fiber, labor, and distribution, especially in Europe, are expected to negatively impact margins [6]. - Merger-related costs may disrupt free cash flow margins and affect overall performance in the fourth quarter [6]. - Pricing actions and cost-saving initiatives are anticipated to mitigate some of these challenges [6]. Earnings Prediction - The current Earnings ESP for Smurfit Westrock is -13.00%, indicating a lower likelihood of an earnings beat this quarter [7]. - The company holds a Zacks Rank of 4 (Sell), suggesting a cautious outlook [8]. Stock Performance - Smurfit Westrock's shares have increased by 2.6% over the past three months, contrasting with a 1.8% decline in the broader industry [9].
Smurfit Westrock is Set to Report Q4 Earnings: What's in Store?