Wednesday, April 1, 2015

Rock-Tenn (RKT) Stock Declining Today on Guidance Cut

NEW YORK (TheStreet) -- Shares of Rock-Tenn Co. are down by 3.88% to $62 in pre-market trading on Wednesday morning, after the paperboard, packaging, and marketing solutions provider reduced its fiscal 2015 second quarter earnings guidance. Rock-Tenn is now expecting earnings for the quarter to be in a range between 70 cents and 75 cents per share, compared to its previous forecast of 80 cents to 90 cents per share. The company said that although its corrugated packaging business continues to perform well volume performance has been "more than offset" by a harsh winter which included natural gas curtailment and challenging logistics execution that impacted operations during the quarter, electrical failure in its Panama City mill in early February, and lower promotional activity. Rock-Tenn will release its 2015 second quarter earnings results after the market close on Wednesday April 29. Separately, TheStreet Ratings team rates ROCK-TENN CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: "We rate ROCK-TENN CO (RKT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows: RKT's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.04% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RKT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Containers & Packaging industry average. The net income increased by 14.0% when compared to the same quarter one year prior, going from $109.70 million to $125.10 million. Net operating cash flow has slightly increased to $332.40 million or 9.16% when compared to the same quarter last year. In addition, ROCK-TENN CO has also modestly surpassed the industry average cash flow growth rate of 0.26%. You can view the full analysis from the report here: RKT Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015


Click to view a price quote on RKT. Click to research the Consumer Non-Durables industry.





from Latest TSC Headlines http://ift.tt/1ED4VgV

No comments:

Post a Comment