MeadWestvaco Corp. Earnings Cheat Sheet: Back to a Profit

S&P 500 (NYSE:SPY) component MeadWestvaco Corporation (NYSE:MWV) reported its results for the third quarter. MeadWestvaco provides packaging solutions to clients in the healthcare, personal and beauty care, food, beverage, tobacco, media and entertainment, and home and garden industries.

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MeadWestvaco Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $117 million (67 cents per diluted share) in the quarter. MeadWestvaco Corporation had a net loss of $15 million or a loss 9 cents per share in the year earlier quarter.

Revenue: Rose 9% to $1.64 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MWV reported adjusted net income of 70 cents per share. By that measure, the company beat the mean estimate of 65 cents per share. It beat the average revenue estimate of $1.59 billion.

Quoting Management: “MWV’s record-setting quarterly operating results clearly demonstrate the stronger, more sustainable financial returns we are generating with our market-focused strategy,” said John A. Luke, Jr., chairman and chief executive officer. “We continue to make progress with commercial strategies designed to capture growth in targeted areas and expand our market share – even in those markets where demand is being impacted by global economic conditions. This progress – building on the success we have had all year – demonstrates the strong financial return on our strategy and gives us a confident long-term outlook.”

Key Stats:

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 54 cents per share.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 0.3% to $1.56 billion from the year earlier quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 40 cents per share from 39 cents. For the fiscal year, the average estimate has moved down from $2.04 a share to $2.02 over the last thirty days.

Competitors to Watch: Smurfit-Stone Container Corp. (NYSE:SSCC), Rock-Tenn Company (NYSE:RKT), Packaging Corp. of America (NYSE:PKG), MOD-PAC CORP. (NASDAQ:MPAC), Graphic Packaging Holding Co. (NYSE:GPK), International Paper Co. (NYSE:IP), KapStone Paper and Packaging Corp. (NYSE:KS), Clearwater Paper Corp (NYSE:CLW) and Temple-Inland, Inc. (NYSE:TIN).

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(Source: Xignite Financials)