The 10-second takeaway
For the quarter ended June 30 (Q2), MeadWestvaco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
MeadWestvaco logged revenue of $1.43 billion. The 10 analysts polled by S&P Capital IQ expected sales of $1.45 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 $0.37. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. Non-GAAP EPS of $0.37 for Q2 were 20% lower than the prior-year quarter's $0.46 per share. (The prior-year quarter included $0.06 per share in earnings from discontinued operations.) GAAP EPS of $0.39 for Q2 were 22% lower than the prior-year quarter's $0.50 per share. (The prior-year quarter included $0.06 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 18.3%, 500 basis points worse than the prior-year quarter. Operating margin was 7.2%, 350 basis points worse than the prior-year quarter. Net margin was 5.0%, 120 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 $0.54.
Next year's average estimate for revenue is $5.68 billion. The average EPS estimate is $1.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 87 members out of 107 rating the stock outperform, and 20 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give MeadWestvaco a green thumbs-up, and seven 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 $37.33.
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