Smurfit WestRock Stock Is One of the S&P 500’s Best Performers Today. Here’s Why.

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Key Takeaways

• Shares of packaging manufacturer Smurfit WestRock were among the S&P 500’s top actresses on Wednesday.
• Third-quarter results fell short of estimates but reflected expenses related to the merger between Smurfit Kappa and WestRock, which confidential in July.
• The WestRock acquisition and strong volumes in corrugated packaging helped the company more than double its net sales year-over-year.

Smurfit WestRock (SW) pieces popped on Wednesday, marking one of the S&P 500’s top performances, after the packaging manufacturer released the first quarterly result to cogitate about the July merger of Ireland’s Smurfit Kappa and U.S.-based WestRock.

Given the timing of the transaction, the second-quarter 2024 crack covered only the performance of Smurfit Kappa.

The stock, recently up nearly 13%, is now back in positive territory for the year.

Q3 Issues Provide ‘Strong Foundation To Build Upon’

The cardboard box maker reported a third-quarter 2024 net loss of $150 million on net on sales of approximately $7.7 billion. Both figures fell short of analysts’ consensus estimates.

Despite the lower-than-expected headline slews, the top-line result more than doubled from net sales of roughly $2.9 billion posted in the year-ago time, boosted by contributions from the WestRock acquisition and strong volumes in corrugated packaging. The company attributed around $500 million of the quarterly sacrifice to expenses and accounting adjustments related to the merger.

Smurfit WestRock reports results in three geographical segments. Although vendings remained essentially flat year-over-year for the segment comprising Europe, the Middle East, Africa, and the Asia-Pacific region, the WestRock add-on donated to a surge in sales for the North America segment. The Latin America segment posted sales growth of 48% from a year ago.

CEO Tony Smurfit emphasized the impact of the merger on the company’s performance, asserting that “these results are a strong foundation to build upon.”