MeadWestvaco Corp Earnings: Reversing to a Loss Following Two Consecutive Quarters of Profit

S&P 500 (NYSE:SPY) component MeadWestvaco Corporation (NYSE:MWV) reported its results for the fourth 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 Fourth Quarter

Results: Reported a loss of $15 million (9 cents per diluted share) in the quarter. MeadWestvaco Corporation had a net income of $47 million or 28 cents per share in the year earlier quarter.

Revenue: Remained constant at $1.5 billion.

Actual vs. Wall St. Expectations: MWV reported adjusted net income of 26 cents per share. By that measure, the company fell short of mean estimate of 28 cents per share. Analysts were expecting revenue of $1.48 billion.

Quoting Management: “Another year of record results in 2011 demonstrates that our market-focused strategies will deliver strong, sustainable financial returns for our shareholders,” said John A. Luke, Jr., chairman and chief executive officer. “We are confident that our growth model centered on commercial excellence, innovation, emerging markets and expanded participation will extend and accelerate this outstanding progress over the next several years.”

Key Stats:

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $117 million in the third quarter, a profit of $89 million in the second quarter and $65 million in the first.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 70 cents versus a mean estimate of net income of 65 cents per share.

Looking Forward: Analysts are pessimistic about the company’s results for the next quarter. The average estimate has fallen for the first quarter of the next fiscal year to 32 cents per share, down from 37 cents seven days ago. The average estimate for the fiscal year is $1.95 per share, falling from $2.04 thirty days ago.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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