The 10-second takeaway
For the quarter ended March 31 (Q1), MeadWestvaco met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
MeadWestvaco booked revenue of $1.34 billion. The seven analysts polled by S&P Capital IQ wanted to see revenue of $1.36 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.16. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. Non-GAAP EPS of $0.16 for Q1 were 53% lower than the prior-year quarter's $0.34 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.06 for Q1 were 79% lower than the prior-year quarter's $0.28 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.0%, 520 basis points worse than the prior-year quarter. Operating margin was 3.5%, 580 basis points worse than the prior-year quarter. Net margin was 0.8%, 290 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.50 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $5.78 billion. The average EPS estimate is $1.64.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 87 members out of 106 rating the stock outperform, and 19 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give MeadWestvaco a green thumbs-up, and six 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 $36.92.
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