Packaging Corp 2Q Highlights
- Adjusted EPS for Q2: $2.20, beating the estimate of $2.11
- EPS for Q2: $2.21, down from $2.24 year-over-year
- Net sales for Q2: $2.08 billion, a 6.3% increase year-over-year, beating the estimate of $2.02 billion
- Packaging segment sales for Q2: $1.91 billion, up 6.6% year-over-year, beating the estimate of $1.85 billion
- Paper segment sales for Q2: $150.1 million, up 5.1% year-over-year, beating the estimate of $142.8 million
- EBITDA excluding items for Q2: $404.0 million, down 3.2% year-over-year, but exceeding the estimate of $399.6 million
- Adjusted EBITDA for packaging: $400.0 million, a decrease of 1.3% year-over-year, but surpassing the estimate of $385.4 million
- Adjusted EBITDA for paper: $30.6 million, down 21% year-over-year, below the estimate of $37.1 million
- Depreciation, amortization, and depletion for Q2: $128.5 million, a slight increase of 0.5% year-over-year, slightly under the estimate of $131 million
- Third quarter EPS forecast: $2.45
- Comments:
- Operating and converting costs are expected to rise due to seasonal electricity usage and prices.
- Slight increase anticipated in recycled fiber costs.
- Scheduled outage expenses expected to decrease slightly.
- Paper volume predicted to be slightly lower due to back-to-school business timing in the second quarter.
- Analyst recommendations: 4 buys, 4 holds, 2 sells
Packaging Corporation of America on Smartkarma
According to Baptista Research‘s recent coverage on Smartkarma, Packaging Corporation of America posted its first-quarter 2024 results, revealing a net income of $155 million, or $1.72 per share, and total net sales of $2 billion. Despite a decrease from the previous year’s results, these figures represent a notable accomplishment for the company. To combat inflationary pressures, Packaging Corporation of America has been prioritizing cost optimization and enhancing operational efficiencies in its manufacturing and converting facilities.
A look at Packaging Corporation of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Packaging Corporation of America shows a positive long-term outlook. With solid scores in Growth and Momentum, the company is positioned for continued expansion and market performance. Their focus on manufacturing containerboard and corrugated packaging products aligns well with the current demand for efficient and sustainable packaging solutions.
Additionally, Packaging Corporation of America‘s respectable scores in Resilience and Dividend indicate a stable financial standing and a commitment to rewarding shareholders. While there is room for improvement in the Value category, the overall outlook for the company remains optimistic, reflecting its strong position in the packaging industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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