Smurfit Westrock Q4 Earnings Miss Estimates, Sales Skyrockets Y/Y

Core Insights - Smurfit Westrock Plc reported fourth-quarter 2024 earnings of 28 cents per share, an increase from 19 cents in the same quarter last year, but missed the Zacks Consensus Estimate of 68 cents [1][10] - The company was formed by the merger of Smurfit Kappa and WestRock on July 5, 2024, and results are reported as a unified entity starting from the third quarter of 2024 [2] Financial Performance - Net sales for Q4 surged 163.4% year over year to $7.54 billion, although it fell short of the Zacks Consensus Estimate of$7.80 billion [3] - Cost of sales increased by 182.1% to $6.1 billion, while gross profit rose 105.7$1.44 billion [4] - Adjusted EBITDA reached $1.17 billion, a 161$2.52 billion, up 17.4% year over year, with adjusted EBITDA of $371 million, a 4.8$4.59 billion from $0.38 billion in the prior year, with adjusted EBITDA rising to$710 million from $72 million [6] - LATAM segment sales increased by 52.8$524 million, with adjusted EBITDA soaring 112.8% to $121 million [7] Cash Position and Balance Sheet - Cash and cash equivalents at the end of 2024 were$0.86 million, down from $1 billion at the end of 2023 [8] - Net cash provided by operating activities was$781 million, compared to $611 million in the same quarter last year [8] - Adjusted free cash flow at the end of 2024 was$257 million, down from $391 million in the previous year [8] Annual Performance - For 2024, adjusted earnings were reported at 74 cents per share, missing the Zacks Consensus Estimate of$2.66, down from $3.30 in the previous year [10] - Net sales for the year increased by 74.6$21.11 billion, but also fell short of the Zacks Consensus Estimate of $30.90 billion [10] - Adjusted EBITDA for 2024 was$4.7 billion, aligning with company guidance [10] Stock Performance - Smurfit Westrock's shares have increased by 34.7% over the past six months, compared to the industry's growth of 34.2% [11]