Smurfit Westrock's (SW +2.47%) equity looked like it was headed for a double-digit percentage plunge this week. The global packaging company released a set of quarterly earnings that wasn't greeted warmly by either investors or analysts. Mostly because of this, its share price was down by more than 16% week to date as of Friday before market open.
A significant bottom-line miss
Wednesday morning, Smurfit published its third-quarter numbers. These showed that the company's net sales were slightly over $8 billion for the frame, which was 4% higher year over year. They were also good enough to top the average analyst estimate of $7.89 billion.
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Smurfit's bottom line according to generally accepted accounting principles (GAAP) flipped to a profit of $245 million from the year-ago loss of $150 million. On a non-GAAP (adjusted), per-share basis, its net income rose to $0.58 from $0.53. Analysts, however, were collectively expecting a notably higher figure of $0.72 for that line item.
In its earnings release, CEO and company namesake Tony Smurfit said that so far, 2025 "has been characterized by a challenging demand backdrop." It is currently taking steps to rationalize its business.
NYSE: SW
Key Data Points
Lowering the boom
One day after Smurfit's third quarter was made public, several analysts lowered their price targets on the stock. None of these cuts were drastic -- RBC Capital's Matthew McKellar, for example, only lowered his by $1 per share to $54 although he maintained his outperform (buy) recommendation. However, when taken together they likely exacerbated the negative sentiment hovering over Smurfit.
