Smurfit Westrock (SW) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.\n\nThis quarterly report represents an earnings surprise of -21.05%. A quarter ago, it was expected that this paper and packaging company would post earnings of $0.65 per share when it actually produced earnings of $0.73, delivering a surprise of +12.31%.\n\nOver the last four quarters, the company has surpassed consensus EPS estimates just once.\n\nSmurfit Westrock, which belongs to the Zacks Paper and Related Products industry, posted revenues of $7.94 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.22%. This compares to year-ago revenues of $2.97 billion. The company has topped consensus revenue estimates just once over the last four quarters.\n\nThe sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.\n\nSmurfit Westrock shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 8.3%.\n\nWhat's Next for Smurfit Westrock?\n\nWhile Smurfit Westrock has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?\n\nThere are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.\n\nEmpirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.\n\nAhead of this earnings release, the estimate revisions trend for Smurfit Westrock was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.\n\nIt will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.80 on $8.04 billion in revenues for the coming quarter and $2.88 on $31.66 billion in revenues for the current fiscal year.\n\nInvestors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Paper and Related Products is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.\n\nOne other stock from the same industry, Rayonier Advanced Materials (RYAM), is yet to report results for the quarter ended June 2025. The results are expected to be released on August 5.\n\nThis maker of cellulose products is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -205.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.\n\nRayonier Advanced Materials' revenues are expected to be $404.3 million, down 3.5% from the year-ago quarter.

Smurfit Westrock (SW) Q2 Earnings Lag Estimates

Smurfit Westrock reported Q2 earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.57 per share. Revenues reached $7.94 billion, surpassing estimates. The company's stock fell 10.5% year-to-date, while the S&P 500 gained 8.3%. Rayonier Advanced Materials is expected to report a quarterly loss of $0.20 per share.