Packaging Corporation of America's Quarterly Earnings Preview: What You Need to Know

Yahoo

04-07-2025

Valued at $18.2 billion by market cap, Packaging Corporation of America (PKG), based in Lake Forest, Illinois, operates as a leading U.S. producer of containerboard and corrugated packaging. Operating through its Packaging and Paper segments, PKG provides essential products like shipping containers and protective packaging to industries such as food, beverages, and industrial goods.
The packaging giant is expected to announce its second-quarter results after the markets close on Wednesday, Jul. 23. Ahead of the event, analysts expect PKG to deliver an adjusted earnings of $2.43 per share, up 10.5% from $2.20 per share reported in the year-ago quarter. While the company has missed the Street's bottom-line estimates once over the past four quarters, it has surpassed the expectations on three other occasions.
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Furthermore, for the full fiscal 2025, PKG's earnings are expected to grow to $10.35 per share, up a notable 14.5% from $9.04 per share in fiscal 2024. Moreover, its earnings are expected to further grow 9.8% year-over-year to $10.35 per share in fiscal 2026.
Packaging Corp. has gained 13.8% over the past 52-week period, underperforming the Consumer Discretionary Select Sector SPDR Fund's (XLY) 17.9% surge but slightly outpacing the S&P 500 Index's ($SPX) 13% gains during the same time frame.
Despite reporting better-than-expected financials, PKG stock prices observed a marginal dip in the trading session after the release of its Q1 results on Apr. 22. The company's packaging sales experienced a solid boost during the quarter, leading to its net sales growing 8.2% year-over-year to $2.1 billion, surpassing the Street's expectations by a thin margin. Meanwhile, driven by a favorable pricing mix, its margins observed a significant expansion. This led to its adjusted EPS soaring 34.3% year-over-year to $2.31, exceeding the consensus estimates by 4.5%. Following the initial dip, PKG stock prices rose 2.2% in the subsequent trading session.
The stock holds a consensus 'Moderate Buy' rating overall. Of the eight analysts covering the PKG stock, opinions include three 'Strong Buys' and five 'Holds.' Its mean price target of $210.22 suggests a modest 4.1% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com