The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MeadWestvaco met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded.
Gross margins contracted, operating margins contracted, net margins increased.
MeadWestvaco booked revenue of $1.33 billion. The nine analysts polled by S&P Capital IQ expected a top line of $1.33 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $1.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.07. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS were $0.10 for Q4 compared to -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.5%, 180 basis points worse than the prior-year quarter. Operating margin was 3.7%, 50 basis points worse than the prior-year quarter. Net margin was 1.3%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.36 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $5.75 billion. The average EPS estimate is $1.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 88 members out of 106 rating the stock outperform, and 18 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give MeadWestvaco a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MeadWestvaco is outperform, with an average price target of $33.75.
Can your portfolio provide you with enough income to last through retirement? You'll need more than MeadWestvaco. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add MeadWestvaco to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.