- Packaging Corp reported an adjusted EPS of $2.48, surpassing the estimate of $2.45.
- On a year-over-year basis, EPS increased to $2.67 from $2.21.
- Net sales rose by 4.6% year-over-year to $2.17 billion, slightly below the estimate of $2.19 billion.
- The packaging segment achieved sales of $2.01 billion, a 5.1% year-over-year increase, but slightly under the estimate of $2.02 billion.
- The paper segment recorded sales of $145.8 million, a 2.9% decrease year-over-year, missing the estimate of $152.1 million.
- EBITDA, excluding certain items, increased by 12% year-over-year to $450.8 million, slightly beating the estimate of $447.2 million.
- Adjusted EBITDA for the packaging segment rose by 13% year-over-year to $452.9 million, surpassing the estimate of $436.7 million.
- The paper segment’s adjusted EBITDA fell by 1% year-over-year to $30.3 million, below the estimate of $40.6 million.
- Depreciation, amortization, and depletion expenses were $140.7 million, reflecting a 9.5% increase year-over-year, slightly above the estimate of $138.1 million.
- The company noted that export containerboard sales are expected to decline due to the global trade environment.
- Despite cautious ordering patterns, corrugated product volumes remained solid, with daily shipments exceeding those of the second quarter of 2024 and the first quarter of 2025.
- Analyst recommendations for the stock include 4 buys, 5 holds, and 2 sells.
Packaging Corporation of America on Smartkarma
Analyst coverage of Packaging Corporation of America on Smartkarma has highlighted insights by Baptista Research. Their research report, “Packaging Corporation of America: An Insight Into Its Market Adaptability,” provides a bullish outlook on PCA. The report acknowledges PCA’s strong performance in the fourth quarter of 2024, with a significant increase in net income to $221 million, or $2.45 per share, compared to the previous year. The earnings call discussed both achievements and challenges faced by PCA, emphasizing its adaptability in the market.
A look at Packaging Corporation of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Packaging Corporation of America, a company that manufactures containerboard and corrugated packaging products, is positioned with a balanced outlook according to Smartkarma Smart Scores. With ratings of 3 across the board for Value, Dividend, Growth, Resilience, and Momentum, Packaging Corporation of America showcases a steady performance across key factors. The company’s focus on producing multi-color boxes, displays, meat boxes, and wax-coated boxes for the agricultural industry underscores its commitment to diversified product offerings. This consistent performance and product range indicate a stable long-term outlook for Packaging Corporation of America.
In summary, Packaging Corporation of America is a manufacturer specializing in protective packaging solutions. With a well-rounded score of 3 in Value, Dividend, Growth, Resilience, and Momentum, the company demonstrates strength across various aspects of its operations. By providing essential products for the shipment and protection of goods, including innovative solutions for the agricultural industry, Packaging Corporation of America is poised to maintain its position in the market with a stable outlook for the future.
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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