Examining the Future: Packaging Corp of America's Earnings Outlook

Packaging Corp of America PKG will release its quarterly earnings report on Tuesday, 2025-04-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Packaging Corp of America to report an earnings per share (EPS) of $2.22.

Packaging Corp of America bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

In the previous earnings release, the company missed EPS by $0.06, leading to a 9.77% drop in the share price the following trading session.

Here's a look at Packaging Corp of America's past performance and the resulting price change:

Stock Performance

Shares of Packaging Corp of America were trading at $187.19 as of April 18. Over the last 52-week period, shares are up 6.16%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Packaging Corp of America

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Packaging Corp of America.

The consensus rating for Packaging Corp of America is Buy, derived from 4 analyst ratings. An average one-year price target of $240.0 implies a potential 28.21% upside.

Analyzing Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Avery Dennison, International Paper and Graphic Packaging Holding, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Avery Dennison, with an average 1-year price target of $208.4, suggesting a potential 11.33% upside.
• Analysts currently favor an Outperform trajectory for International Paper, with an average 1-year price target of $59.33, suggesting a potential 68.3% downside.
• Analysts currently favor an Neutral trajectory for Graphic Packaging Holding, with an average 1-year price target of $31.0, suggesting a potential 83.44% downside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for Avery Dennison, International Paper and Graphic Packaging Holding, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Packaging Corp of America ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Unveiling the Story Behind Packaging Corp of America

Packaging Corp. of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 4.5 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. PCA differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.

Key Indicators: Packaging Corp of America's Financial Health

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Packaging Corp of America's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.74% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Packaging Corp of America's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.23%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Packaging Corp of America's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.07%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.5%, the company showcases effective utilization of assets.

Debt Management: Packaging Corp of America's debt-to-equity ratio is below the industry average at 0.63, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Packaging Corp of America visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.