
- Packaging Corp’s second-quarter EPS forecast is $2.41, missing the estimated $2.66.
- First quarter adjusted EPS was $2.31, beating the estimate of $2.21.
- First quarter EPS increased to $2.26 from $1.63 year-over-year.
- Net sales for the first quarter reached $2.14 billion, marking an 8.2% year-over-year increase, above the estimated $2.12 billion.
- Packaging segment sales were $1.97 billion, a 9.6% year-over-year rise, surpassing the expected $1.96 billion.
- Paper segment sales fell to $154.2 million, a decrease of 5.9% year-over-year, missing the $159.1 million estimate.
- Adjusted EBITDA excluding items was $421.1 million, up 26% year-over-year, above the $416.4 million estimate.
- Packaging adjusted EBITDA increased by 25% year-over-year to $409.3 million, exceeding the expected $405.8 million.
- Paper adjusted EBITDA was slightly down by 1% year-over-year at $40.2 million, close to the $40.4 million estimate.
- Depreciation, amortization, and depletion costs were $138.0 million, a 7.5% increase year-over-year, slightly below the estimated $138.9 million.
- The company faces higher operating costs due to lower containerboard volume and increased rail contract rates at six mills.
- A planned maintenance outage was rescheduled earlier, leading to higher costs in the second quarter than previously anticipated.
- The security currently has 6 buy ratings, 2 hold ratings, and 2 sell ratings from analysts.
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Packaging Corporation of America on Smartkarma
Analyst coverage of Packaging Corporation of America on Smartkarma is insightful, with Baptista Research offering valuable assessments. In their report titled “Packaging Corporation of America: An Insight Into Its Market Adaptability,” the analysis highlights PCA’s strong performance in the fourth quarter and throughout 2024. The report discusses the company’s increased net income of $221 million for Q4 2024, reflecting positive accomplishments and challenges faced by PCA.
Additionally, Baptista Research‘s analysis titled “Packaging Corporation of America: What Is The Expected Margin Impact Of Its Strategic Investments To Enhance Operational Efficiency?- Major Drivers,” delves into PCA’s robust third-quarter 2024 results. This report emphasizes the company’s notable revenue and profitability growth driven by increased volume and effective cost management. PCA’s net income of $238 million in Q3 2024 indicates a significant improvement compared to the same period in 2023, showcasing the company’s operational efficiency enhancements.
A look at Packaging Corporation of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 for Packaging Corporation of America, the company is positioned for a stable long-term outlook. With scores of 2 for Value, 3 for Dividend, Growth, Resilience, and Momentum, Packaging Corporation of America demonstrates a balanced performance across key factors. This indicates a moderate valuation, consistent dividend payouts, steady growth potential, resilience in challenging market conditions, and a positive momentum in the market.
Packaging Corporation of America manufactures containerboard and corrugated packaging products, catering to various industries for the protection of shipped goods. In addition to traditional packaging products, the company also specializes in producing multi-color boxes, displays, and specialized boxes for industries like agriculture. This diversified product range positions Packaging Corporation of America well to meet the evolving needs of its customers and sustain long-term growth.
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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