Core Viewpoint - The market anticipates a year-over-year decline in earnings for Smurfit Westrock despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Smurfit Westrock is expected to report quarterly earnings of $0.57 per share, reflecting a year-over-year decrease of 17.4% [3]. - Revenue projections stand at $7.98 billion, indicating a significant increase of 168.8% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.32% over the past 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Smurfit Westrock is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.24%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [9][10]. - Smurfit Westrock currently holds a Zacks Rank of 3, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Smurfit Westrock exceeded earnings expectations with a surprise of +12.31%, having reported earnings of $0.73 against an expectation of $0.65 [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - Smurfit Westrock does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when evaluating the stock ahead of the earnings release [17].
Analysts Estimate Smurfit Westrock (SW) to Report a Decline in Earnings: What to Look Out for