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 +0.01% change in stock price 10 days leading up to the earnings, and a -0.34% change 10 days following the report. On the earnings day itself, the stock moves by -0.15%. This data can give you a slight idea of what to expect for the next quarter's release.
WEST Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
220.86M
0.57%
5.98%
Gross Margin
16.79%
5.13%
-15.50%
Operating Margin
-4.10%
355.56%
-16.33%
Net Margin
-6.46%
-185.34%
-24.18%
EPS
-0.16
-233.33%
-20.00%
No Data Available
WEST Earnings Analysis
Westrock Coffee Company Common Stock Corporation (WEST.O) Earnings Conference Call
Positive
Segment EBITDA Growth: 1. Segment Adjusted EBITDA Growth: The Beverage Solutions segment's adjusted EBITDA increased by 19% year-over-year, reaching $11.8 million, while the Sustainable Sourcing & Traceability segment saw a remarkable 45% year-over-year growth, contributing to a total of $2.5 million in adjusted EBITDA for the quarter.
Sales Performance Surge: 2. Strong Sales Performance: Consolidated net sales for Q3 2024 were $220.9 million, with a 33% increase in sales for the Sustainable Sourcing & Traceability segment, driven by a 36% increase in volumes compared to Q3 2023.
Strong Liquidity Position: 3. Significant Cash Reserves: At the end of the quarter, Westrock Coffee Company reported approximately $90 million in consolidated unrestricted cash and undrawn revolving credit commitments, indicating a strong liquidity position.
Warrant Tender Success: 4. Successful Warrant Exchange: The company completed a warrant tender offer, exchanging all private placement warrants and over 97% of public warrants, resulting in the issuance of 5.4 million common shares and the delisting of public warrants, enhancing shareholder value.
2025 EBITDA Expectations: 5. Positive 2025 EBITDA Guidance: For fiscal year 2025, Westrock Coffee expects to generate consolidated adjusted EBITDA between $80 million and $100 million, reflecting strong anticipated growth from new customer contracts and operational efficiencies.
Negative
Stagnant Net Sales: 1. Flat Net Sales: Consolidated net sales for Q3 2024 were $220.9 million, unchanged from Q3 2023, indicating stagnation in revenue growth.
Single-Serve Volume Decline: 2. Declining Single-Serve Volumes: Single-serve cup volumes decreased by 24% compared to Q3 2023, reflecting a significant drop in consumer demand for this product category.
Decline in Adjusted EBITDA: 3. Lower Adjusted EBITDA: Consolidated adjusted EBITDA for Q3 2024 was $10.3 million, down from $11.6 million in Q3 2023, primarily due to $4 million in Conway scale-up operating costs.
Operating Cost Impact: 4. Increased Operating Costs: The company incurred $4 million in Conway scale-up operating costs in Q3 2024, which negatively impacted overall profitability compared to the previous year.
2024 EBITDA Forecast Adjustment: 5. Revised 2024 EBITDA Guidance: The company expects to report only $50 million of consolidated adjusted EBITDA for fiscal year 2024, at the low end of its previously announced range, due to lower-than-expected sales growth.
WEST FAQs
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WEST Earning Call Sentiment
Westrock Coffee Company (WEST) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WEST.O
0%Positive
The earnings call presented mixed signals. While the company showed some positive developments, such as increased gross profit and promising guidance for 2025, there were notable concerns. The delay in the Conway plant start-up, soft single-serve cup volumes, and regulatory changes pose risks. The Q&A section highlighted uncertainties around growth drivers and acceptance work timelines. The flat net sales and declining adjusted EBITDA further temper optimism. Overall, the sentiment is neutral, reflecting a balance of potential growth and existing challenges.
