Packaging Corporation of America (NYSE:PKG) will be reporting results tomorrow after the bell. Here’s what to expect.
Packaging Corporation of America beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $2.18 billion, up 12.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ sales volume and adjusted operating income estimates.
Is Packaging Corporation of America a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Packaging Corporation of America’s revenue to grow 9.9% year on year to $2.13 billion, a reversal from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.53 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 four times over the last two years.
Looking at Packaging Corporation of America’s peers in the industrials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. MSC Industrial’s revenues decreased 2.7% year on year, beating analysts’ expectations by 2.6%, and GATX reported revenues up 12.2%, topping estimates by 0.9%. MSC Industrial’s stock price was unchanged after the results, while GATX was up 8.3%.
Read our full analysis of MSC Industrial’s results here and GATX’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 4.9% on average over the last month. Packaging Corporation of America is up 6.8% during the same time and is heading into earnings with an average analyst price target of $236.32 (compared to the current share price of $240.27).
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