Packaging of America Earnings: Here’s Why Investors are Excited Now
Packaging Corp. of America (NYSE:PKG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.93%.
Packaging Corp. of America Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 44.9% to $0.71 in the quarter versus EPS of $0.49 in the year-earlier quarter.
Revenue: Rose 12.31% to $800.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Packaging Corp. of America reported adjusted EPS income of $0.71 per share. By that measure, the company beat the mean analyst estimate of $0.63. It beat the average revenue estimate of $770.06 million.
Quoting Management: Commenting on reported results, Mark W. Kowlzan, Chief Executive Officer of PCA, said, “We had an outstanding quarter in all aspects of our operations with record earnings driven by higher prices and higher corrugated products volume. The annual outages at three of our mills went extremely well with very efficient start-ups and record productivity. Earnings were higher than our second quarter guidance driven by better than forecasted sales volume and price, and lower than forecasted costs.”
“Looking ahead to the third quarter,” Mr. Kowlzan added, “we expect higher corrugated products prices, higher sales volume, and with no planned annual outages, increased mill production and lower mill operating costs. We also expect higher purchased electricity costs with summer pricing, higher amortization of annual outage repair costs, and a higher tax rate. Considering these items, we expect third quarter earnings to be about $0.88 per share.”
Key Stats (on next page)…