Packaging Corp of America (NYSE:PKG) is preparing to release its quarterly earnings on Wednesday, 2025-07-23. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Packaging Corp of America to report an earnings per share (EPS) of $2.43.
The market awaits Packaging Corp of America's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Historical Earnings Performance
Last quarter the company beat EPS by $0.10, which was followed by a 0.93% drop in the share price the next day.
Here's a look at Packaging Corp of America's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.21 | 2.53 | 2.50 | 2.14 |
| EPS Actual | 2.31 | 2.47 | 2.65 | 2.20 |
| Price Change % | -1.0% | -10.0% | 6.0% | 0.0% |
Performance of Packaging Corp of America Shares
Shares of Packaging Corp of America were trading at $201.39 as of July 21. Over the last 52-week period, shares are up 5.31%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Insights Shared by Analysts on Packaging Corp of America
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Packaging Corp of America.
The consensus rating for Packaging Corp of America is Neutral, based on 8 analyst ratings. With an average one-year price target of $209.5, there's a potential 4.03% upside.
Peer Ratings Comparison
This comparison focuses on the analyst ratings and average 1-year price targets of Avery Dennison, International Paper and Graphic Packaging Holding, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Avery Dennison, with an average 1-year price target of $200.62, suggesting a potential 0.38% downside.
- Analysts currently favor an Underperform trajectory for International Paper, with an average 1-year price target of $47.67, suggesting a potential 76.33% downside.
- Analysts currently favor an Neutral trajectory for Graphic Packaging Holding, with an average 1-year price target of $25.0, suggesting a potential 87.59% downside.
Overview of Peer Analysis
In the peer analysis summary, key metrics for Avery Dennison, International Paper and Graphic Packaging Holding are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Packaging Corp of America | Neutral | 8.16% | $454.70M | 4.55% |
| Avery Dennison | Outperform | -0.14% | $621.50M | 7.42% |
| International Paper | Underperform | 27.75% | $1.64B | -0.80% |
| Graphic Packaging Holding | Neutral | -6.15% | $445M | 4.12% |
Key Takeaway:
Packaging Corp of America ranks in the middle for Consensus. It ranks at the bottom for Revenue Growth and Gross Profit. It ranks at the top for Return on Equity.
Unveiling the Story Behind Packaging Corp of America
Packaging Corp. of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 5 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. PCA differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.
Financial Insights: Packaging Corp of America
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Packaging Corp of America's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 8.16%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 9.45%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.55%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Packaging Corp of America's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.27% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.62.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Latest Ratings for PKG
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Jul 2025 | Wells Fargo | Maintains | Equal-Weight | Equal-Weight |
| Jul 2025 | UBS | Maintains | Neutral | Neutral |
| Jun 2025 | Truist Securities | Maintains | Buy | Buy |
View More Analyst Ratings for PKG
View the Latest Analyst Ratings
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