Rock-Tenn Co. shares dropped Friday after the packaging company reported its fiscal fourth-quarter performance fell short of market expectations.
THE SPARK: The company said Thursday that it made $82.3 million, or $1.14 per share, for the quarter that ended Sept. 30. That compares with $83.9 million, or $1.17 per share, in the same quarter last year. After adjusting for restructuring and other special items, it earned $1.39 per share.
Revenue fell to $2.35 million from $2.46 billion.
Analysts expected $1.37 per share on revenue of $2.4 billion.
THE BIG PICTURE: Rock-Tenn, based in Norcross, Ga., makes containerboard, corrugated paper and packaging for consumer products. CEO James Rubright said he was pleased with the earnings, which are up from its fiscal third quarter.
The company raised prices on a number of products and said it expects to realize the benefit of those hikes by the March quarter. They will be offset by lower prices in its consumer segment and higher commodity costs.
SHARE ACTION: Shares fell $7.03, or 9.4 percent, to $67.49 in Friday afternoon trading. They are around the middle of a 52-week trading range of $49.24 to $76.18.