UPDATE: Rock-Tenn Q1 Profit Tops Estimates

Rock-Tenn Co. RKT reported better-than-expected earnings for the fiscal first quarter. The Norcross, Georgia-based company posted quarterly net income of $125.1 million, or $0.88 per share, compared to $109.7 million, or $0.75 per share, in the year-ago quarter. Excluding certain items, the company earned $0.96 per share. Its revenue rose to $2.51 billion from $2.36 billion. However, analysts were estimating earnings of $0.90 per share on revenue of $2.46 billion. Corrugated Packaging segment net sales rose $116 million to $1,768 million, while Consumer Packaging segment net sales climbed $7 million to $479 million. Merchandising Displays segment net sales gained $54 million to $238 million in the latest quarter, while Recycling segment net sales slipped $19 million y/y to $80 million. During the quarter, the company returned $35 million in capital to our shareholders in dividends and stock repurchases. Cash from operations rose $28 million to $332 million in the first quarter of fiscal 2015. RockTenn Chief Executive Officer, Steve Voorhees, stated, "Our team performed well in the quarter as demonstrated by our adjusted EPS of $0.96 - 16% over last year. Our Corrugated Packaging business performed especially well increasing overall shipments by 10.6%, including daily box shipments which increased by 2.5% compared to last year. These positive trends have continued in January. Our strong free cash flow and balance sheet continue to provide us the flexibility to implement our strategy." Rock-Tenn Company and MeadWestvaco Corporation MWV agreed to a $16 billion merger. Rock-Tenn shares fell 1.58% to close at $62.99 on Friday.