What to Expect From Packaging Corporation’s Next Quarterly Earnings Report

Lake Forest, Illinois-based Packaging Corporation of America (PKG) manufactures and sells containerboard and corrugated packaging products in the U.S. Valued at $16.13 billion by market cap, the company operates eight paper mills and 86 corrugated products plants and related facilities. The packaging major is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Tuesday, July 23. 

Ahead of the event, analysts expect PKG to report a profit of $2.10 per share on a diluted basis, down 9.1% from $2.31 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect PKG to report EPS of $8.33, down 4.3% from $8.70 in fiscal 2023.

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PKG stock has outperformed the S&P 500’s ($SPX) 24.3% gains over the past 52 weeks, with shares up 35.4% during this period. Similarly, it outshined the Consumer Disc ETF Vanguard’s (VCR) 11.1% gains over the same time frame.

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On June 24, PKG closed up more than 3% after data from reporting agency Fastmarkets RISI showed containerboard prices were up $40 a ton domestically for corrugating medium and linerboard in June. 

On Apr. 23, PKG shares closed down more than 4% after the company reported Q1 EBITDA excluding items of $333.20 million, which was weaker than the consensus estimates of $345.20 million.

The consensus opinion on PKG stock is bullish, with a “Moderate Buy” rating overall. Out of seven analysts covering the stock, three advise a “Strong Buy” rating, and four analysts give a “Hold” rating. The average analyst price target for PKG is $190.17, indicating a potential upside of 5.9% from the current levels. 

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On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.