April 26, 2011 / 10:28 PM / in 7 years

UPDATE 2-RockTenn Q2 profit misses Wall Street view

* Q2 adj EPS $1.04 vs est $1.26

* Q2 rev up at $792.9 mln (Compares with estimates, adds share graph)

April 26 (Reuters) - Packaging and paper company RockTenn Co reported a quarterly profit that missed market estimates, hurt by higher cost of goods sold.

For January-March, net income attributable to shareholders rose to $37 million, or 92 cents a share, from $32.8 million, or 83 cents a share, a year ago.

On an adjusted basis, it earned $1.04 a share.

Sales rose to $792.9 million from $731.9 million.

Analysts on average had expected earnings of $1.26 a share, before special items, on revenue of $787.7 million, according to Thomson Reuters I/B/E/S.

Cost of goods sold rose to $626.6 million from $570.6 million.

The company, which has a market value of about $2.76 billion, competes with companies such as Packaging Corp of America and Cascades Inc .

In January, Rock-Tenn said it had agreed to buy bigger rival Smurfit-Stone Container Corp in a cash-and-stock deal, seven months after Smurfit emerged from bankruptcy. [ID:nLDE70N039]

Shares of the Norcross, Georgia-based company, which closed at $71.51 on Tuesday on the New York Stock Exchange, were down in extended trade at $70.50. (Reporting by Fareha Khan; Editing by Jarshad Kakkrakandy)

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