Winpak: Falls on Q4 miss, muted outlook

Winpak

04/03/2020 15:31

** Shares of Canada-based packaging materials manufacturer
 WPK.TO  fall 7.8% to C$42.60; top pct loser on S&P/TSX
composite index  .GSPTSE  
    ** Company reports Q4 EPS of 41 cents vs est of 44 cents;
rev of $217.46 mln vs est $222.10 mln - Refinitiv data
    ** Qtr hit by a 3.5% decline in adj volumes, led by a 11%
fall in volumes in its rigid packaging and flexible lidding unit
    ** Looking into 2020, company says competitive selling price
pressures are prevalent which will apply pressure on gross
profit margins  urn:newsml:reuters.com:*:nCNWG64yxa
    ** CIBC downgrades to "neutral" from "outperformer", cuts PT
by C$6 from C$49; says medium-term outlook is muted due to
continued high competition and challenging macro outlook 
    ** TD Securities also lowers PT to C$47 from C$49      
    ** Out of 6 brokerages, 2 rate the stock "buy", 4 "hold";
median PT C$49
    ** Including Wednesday's losses, stock down ~9% YTD

 (Reporting by Shanti S Nair in Bengaluru)
 ((ShantiS.Nair@thomsonreuters.com))