Veritiv Corp opened 30% up on Wednesday: here’s why

Shares of Veritiv Corp (NYSE: VRTV) opened about 30% up on Wednesday after the Georgia-headquartered company reported a record $40 million in net income for the fiscal third quarter – a close to 100% annualised growth.

Q3 financial performance

Veritiv said it earned $2.54 per share in Q3 on $1.77 billion in sales. In the same quarter last year, its earnings were capped at a much lower $1.30 per share on $1.59 billion in sales. In the press release, CEO Sal Abbate said:

Veritiv Corp valued its free cash flow at $36.5 million, as per the earnings press release. Including the price action on Wednesday, the stock is now up nearly 600% on a year-to-date basis.

Full-year guidance and other notable figures

For the full financial year, Veritiv now forecasts up to $9.0 of per-share earnings and at least $120 million in free cash flow.

Other notable figures in the Q3 report include the adjusted EBITDA margin that printed at a record 5.3%, representing a year-over-year increase of 220 basis points. CEO Abbate also said:

Founded in 2014, Veritiv Corp is a Fortune 500 business-to-business provider of packaging, publishing, and hygiene products.