WEST Earnings Prediction
The chart below shows how WEST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WEST sees a -0.95% change in stock price 10 days leading up to the earnings, and a +0.18% change 10 days following the report. On the earnings day itself, the stock moves by +0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
WEST Key Earning Data
2024/Q4
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Gross Margin
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Operating Margin
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Net Margin
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EPS
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WEST Earnings Analysis
Westrock Coffee Co Corporation (WEST.O) Earnings Conference Call
Positive
Beverage Solutions EBITDA Growth: Significant growth in segment adjusted EBITDA, with Beverage Solutions unit achieving $17.8 million, a 53% increase year-over-year.
Strong EBITDA Growth: Overall combined segment adjusted EBITDA reached $21 million, up 53% compared to the previous year, indicating strong operational performance.
Facility Investment Strategy: The company has invested nearly $400 million in building facilities, positioning itself as a leading supplier in the coffee and beverage market.
Customer Onboarding Success: Successful onboarding of new customers in the roast and ground coffee business, leading to increased demand of over 20 million pounds annually.
Single Serve Business Outlook: The single serve business is expected to have its best year in 2025 due to new agreements with leading CPG brands.
Extracts and RTD Volume Growth: Extracts and RTD business experienced nearly 25% volume growth, showcasing strong demand and operational improvements.
Contract Secured with CPG Brands: The company has secured contracts with over a dozen premier global CPG brands, filling over 80% of initial production capacity in Conway.
Production Capacity Expansion: Expansion of production capabilities in response to increased demand from iconic brands, indicating strong market interest.
EBITDA Growth Expectations: The company expects significant EBITDA growth over the next few years, driven by new customer volume onboardings and operational efficiencies.
EBITDA Growth Strategy: Management is focused on delivering tangible results, with a clear strategy to grow EBITDA and reduce leverage ratios.
Negative
Earnings Miss Report: Westrock Coffee Company missed earnings expectations, reporting an EPS of $-0.26 compared to the expected $-0.11.
Net Sales Decline: The company experienced a decline in consolidated net sales for the full year 2024, decreasing by 1.6% compared to the previous year.
Beverage Solutions Sales Decline: The Beverage Solutions segment saw an 8.8% decrease in net sales for 2024, with core coffee and single-serve products declining by 13% and 16% respectively.
Single Serve Volume Decline: Single serve cup volumes remained below forecast for much of the year, impacting overall performance.
Higher Operating Costs Impact: Conway scale-up operating costs were higher than anticipated, totaling $12.8 million, which burdened the adjusted EBITDA results.
Customer Demand Risks: The company acknowledged potential risks of softer customer demand due to higher coffee prices, which could affect future sales.
2025 Guidance Adjustment: The guidance for 2025 was lowered to account for these risks and to introduce conservatism as they ramp up operations.
Monetization Challenges Ahead: The company faced challenges in monetizing the Conway investment, which was delayed until the second quarter of 2025.
WEST FAQs
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WEST Earning Call Sentiment
Westrock Coffee Company, LLC (NASDAQ:WEST) Q4 2024 Earnings Call Transcript
WEST.O
24.86%Positive
The earnings call reveals missed EPS expectations, higher-than-anticipated Conway scale-up costs, and concerns about rising coffee prices impacting demand. Although there is optimistic future guidance, the lack of a share repurchase program and unclear management responses in the Q&A further contribute to negative sentiment. Overall, these factors suggest a negative stock price movement in the short term.
