MeadWestvaco Earnings: Here’s Why Investors are Selling Shares Now

MeadWestvaco Corporation (NYSE:MWV) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.69%.

MeadWestvaco Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 19.57% to $0.37 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 0.77% to $1.43 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: MeadWestvaco Corporation reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.28. It missed the average revenue estimate of $1.45 billion.

Quoting Management: “While the isolated operating challenges weighed on our quarterly results, the profitable growth strategies we’ve been pursuing continues to generate strong gains in targeted packaging and specialty chemicals markets,” said John A. Luke, Jr., chairman and chief executive officer of MWV. “With the operating issues behind us, our businesses are performing well and we are confident the earnings and cash flow improvement we’ve been anticipating for the second half of the year is already underway.”

Key Stats (on next page)…

Revenue increased 6.7% from $1.34 billion in the previous quarter. EPS increased 131.25% from $0.16 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.54 and has not changed. For the current year, the average estimate has moved down from a profit of $1.52 to a profit of $1.35 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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