Charting Rock-Tenn's Latest Earnings Release

Rock-Tenn (NYS: RKT) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Rock-Tenn missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted slightly.


Gross margins were steady, operating margins dropped, net margins grew.

Revenue details
Rock-Tenn notched revenue of $2.35 billion. The nine analysts polled by S&P Capital IQ expected to see sales of $2.44 billion on the same basis. GAAP reported sales were 4.5% lower than the prior-year quarter's $2.46 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.39. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.37 per share. GAAP EPS of $1.14 for Q4 were 1.7% lower than the prior-year quarter's $1.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.8%, about the same as the prior-year quarter. Operating margin was 7.5%, 120 basis points worse than the prior-year quarter. Net margin was 3.5%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.42 billion. On the bottom line, the average EPS estimate is $1.66.

Next year's average estimate for revenue is $9.69 billion. The average EPS estimate is $7.26.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 189 members out of 202 rating the stock outperform, and 13 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Rock-Tenn a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rock-Tenn is outperform, with an average price target of $76.00.

The article Charting Rock-Tenn's Latest Earnings Release originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Rock-Tenn Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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