- Packaging Corp’s adjusted earnings per share (EPS) for Q3 was $2.65, surpassing the estimate of $2.49.
- The company’s reported EPS was $2.64, a significant increase from $2.03 compared to the same quarter last year.
- Net sales reached $2.18 billion, marking a 13% year-over-year increase, and exceeded the estimate of $2.09 billion.
- The Packaging segment reported sales of $2.01 billion, up 14% year-over-year, outperforming the estimated $1.91 billion.
- The Paper segment’s sales slightly increased by 0.9% year-over-year to $159.3 million, surpassing the forecast of $154.6 million.
- EBITDA, excluding certain items, was $460.6 million, representing a 19% rise year-over-year, exceeding the $444 million estimate.
- The Packaging adjusted EBITDA was $445.6 million, a growth of 19% year-over-year, above the estimated $435.1 million.
- The Paper adjusted EBITDA increased by 22% year-over-year to $43.1 million, exceeding the expected $37.9 million.
- Depreciation, amortization, and depletion costs were $132.7 million, a 2.6% increase compared to last year.
- The company forecasts an EPS of $2.47 for the fourth quarter.
- Operations were largely unaffected by the two hurricanes during the quarter.
- Expected increases in operating and converting costs due to higher seasonal energy and chemical expenses.
- Demand in the Packaging segment anticipated to remain robust as corrugated shipments-per-day continue to strengthen with a slight increase in containerboard volume.
- Total shipments in the corrugated business expected to be impacted by two fewer shipping days and hurricane damage affecting strawberry crops in Florida.
- Analyst recommendations include 4 buys, 4 holds, and 2 sells.
Packaging Corporation of America on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following Packaging Corporation of America (PCA) and providing valuable insights. Baptista Research recently published a report highlighting the factors impacting PCA’s performance in 2024 and beyond. PCA’s second-quarter 2024 financial results showed strengths and challenges, with a net income of $199 million and earnings per share (EPS) of $2.21. Despite a slight decrease in EPS compared to the previous year, PCA is navigating well.
In another report by Baptista Research, PCA’s first-quarter 2024 results were discussed. The company reported a net income of $155 million and a total net sales of $2 billion. Although these figures represent a decrease from the previous year, PCA continues to make strides. To combat inflation, PCA is focusing on cost management and enhancing operational efficiencies. Overall, analysts are optimistic about PCA’s future performance based on these fundamental factors.
A look at Packaging Corporation of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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 has a promising long-term outlook. With high scores in growth and momentum, the company looks set to continue its upward trajectory in the packaging industry. Its focus on manufacturing containerboard and corrugated packaging products aligns well with the increasing demand for sustainable and reliable packaging solutions. Additionally, the strong momentum score indicates that investors are optimistic about the company’s future prospects.
Packaging Corporation of America‘s emphasis on growth and innovation, as reflected in its Smart Scores, positions it well for continued success. The company’s ability to adapt to changing market dynamics and deliver value to shareholders, as suggested by its decent scores in value and resilience, further solidifies its standing in the industry. With a diverse product portfolio that includes multi-color boxes and specialized packaging for different sectors like the agricultural industry, Packaging Corporation of America is well-positioned to capitalize on evolving consumer and business needs for packaging solutions.
Summary: Packaging Corporation of America manufactures containerboard and corrugated packaging products for protecting goods during shipment. The company also produces multi-color boxes, displays, meat boxes, and wax-coated boxes for the agricultural 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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