Shares of WestRock Co.
WRK,
tumbled 16.0% toward a more than 3-month low, enough to pace the S&P 500’s
SPX,
decliners, after the paper and packaging company reported fiscal first-quarter profit and sales that missed expectations and pulled its full-year outlook citing “uncertain macroeconomic conditions.” The selloff, comes a day after closing at a 4 1/2-month high, was on track to be the stock’s worst one-day performance since it plunged 17.3% on May 5, 2020. Net income dropped to $45.3 million, or 18 cents a share, from $182.3 million, or 68 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 55 cents missed the FactSet consensus of 61 cents. Sales fell 0.6% to $4.92 to miss expectations of $5.10 billion, as price increases were offset by cost inflation, lower volumes and higher operating costs. Chief Executive David Sewell said he expects the market conditions that weighed on results, including elevated inflation and a softening economy, are expected to continue in the near-term. WestRock shares have now lost 28.9% over the past 12 months, while the S&P 500 has declined 10.2%.
