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Are You Expecting This from Rock-Tenn?

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

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Checking expectations

Rock-Tenn (NYSE: RKT) is expected to report Q2 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Rock-Tenn's revenues will increase 2.9% and EPS will increase 8.2%.

The average estimate for revenue is $2.35 billion. On the bottom line, the average EPS estimate is $1.05.

Revenue details
Last quarter, Rock-Tenn logged revenue of $2.29 billion. GAAP reported sales were 0.9% higher than the prior-year quarter's $2.27 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.35. GAAP EPS of $1.18 for Q1 were 11% higher than the prior-year quarter's $1.06 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 17.9%, 60 basis points better than the prior-year quarter. Operating margin was 8.2%, 80 basis points better than the prior-year quarter. Net margin was 3.8%, 40 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $9.61 billion. The average EPS estimate is $6.33.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 183 members out of 196 rating the stock outperform, and 13 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Rock-Tenn 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 Rock-Tenn is outperform, with an average price target of $78.50.

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