Packaging Corporation of America (NYSE:PKG) will be announcing earnings results this Wednesday after market close. Here’s what you need to know.
Packaging Corporation of America missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $2.17 billion, up 4.6% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EBITDA estimates but a slight miss of analysts’ revenue estimates.
Is Packaging Corporation of America a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Packaging Corporation of America’s revenue to grow 6.1% year on year to $2.31 billion, slowing from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.81 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Packaging Corporation of America has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Packaging Corporation of America’s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 1.5%, and Richardson Electronics reported revenues up 1.6%, topping estimates by 6%. Richardson Electronics traded up 11.4% following the results.
Read our full analysis of Crown Holdings’s results here and Richardson Electronics’s results here.
Investors in the industrials segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Packaging Corporation of America is down 3.2% during the same time and is heading into earnings with an average analyst price target of $224.20 (compared to the current share price of $205.88).
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