MeadWestvaco Earnings: Here’s Why Investors Don’t Like These Results

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

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MeadWestvaco Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 52.94% to $0.16 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Increased 2% to $1.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: MeadWestvaco Corporation reported adjusted EPS income of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.23. It missed the average revenue estimate of $1.36 billion.

Quoting Management: “External factors and temporary operating challenges masked the momentum we are continuing to gain with our profitable growth strategies across our businesses,” said John A. Luke, Jr., chairman and chief executive officer of MWV. “While our first quarter results were disappointing, we continue to see measurable progress from our strategies, and are taking further actions to accelerate our performance and ensure that we achieve our financial goals.”

Key Stats (on next page)…

Revenue increased 1.2% from $1.33 billion in the previous quarter. EPS increased 128.57% from $0.07 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.5. For the current year, the average estimate has moved down from a profit of $1.76 to a profit of $1.64 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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