WestRock Q2 Earnings Surpass Street View; Adopts Massive Buyback

WestRock Co WRK reported second-quarter FY22 sales growth of 21.3% year-on-year, to $5.38 billion, beating the consensus of $5.07 billion.
Corrugated Packaging segment revenue rose 14.7% Y/Y, Consumer Packaging segment increased 15.7%, and Paper segment jumped 36%.
Gross profit gained 33.9% Y/Y to $1 billion with a gross margin of 18.6%.
The operating margin was 1.1%, and operating income for the quarter fell 71.3% to $56.6 million.
The company held $360.2 million in cash and equivalents as of March 31, 2022. Net cash provided by operating activities amounted to $390 million.
Adjusted EBITDA of $853.9 million increased 33.3% Y/Y.
Adjusted EPS of $1.17 beat the analyst consensus of $1.01.
WestRock's board of directors authorized an additional 25 million shares repurchase program, representing authorization of 10% of its outstanding common stock.
Price Action: WRK shares are trading higher by 3.07% at $54.38 on the last check Thursday.