Benzinga | Aug 5, 2021 03:14PM EDT

WestRock Q3 Earnings Top Estimates On Strong Demand

* WestRock Co (NYSE:WRK) reported third-quarter FY21 sales growth of 13.3% year-on-year, to $4.816 billion, beating the analyst consensus of $4.71 billion.

* Corrugated packaging segment revenue rose 16% Y/Y, and consumer packaging segment increased 11.7%.

* Gross profit gained 20.8% Y/Y to 929.9 million with a gross margin of 19.3%.

* The operating margin was 7.9%, and operating income for the quarter rose 40.8% to $382.3 million.

* The company held $549.8 million in cash and equivalents as of June 30, 2021.

* Net cash provided by operating activities amounted to $751 million with a free cash flow of $554 million.

* Adjusted Segment EBITDA of $811 million increased 15% Y/Y.

* Adjusted EPS of $1.00 beat the analyst consensus of $0.96.

* "We saw strong demand for our products and solutions across our targeted end markets, and pricing gains outpaced inflation in the quarter," said CEO David B. Sewell.

* Price action: WRK shares are trading lower by 0.06% at $48.71 on the last check Thursday.