Packaging Corporation of America (NYSE:PKG) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
Packaging Corporation of America beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $2.14 billion, up 8.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ sales volume estimates and a decent beat of analysts’ 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 5.5% year on year to $2.19 billion, in line with the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.44 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 Q2 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 3.6%, beating analysts’ expectations by 0.9%, and Lindsay reported revenues up 21.7%, topping estimates by 4.6%. Lindsay traded up 3.9% following the results.
Read our full analysis of Crown Holdings’s results here and Lindsay’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 5.9% on average over the last month. Packaging Corporation of America is up 6.7% during the same time and is heading into earnings with an average analyst price target of $200.85 (compared to the current share price of $201.39).
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