Here's What to Expect From Pactiv Evergreen's (PTVE) Q4 Earnings

Pactiv Evergreen Inc. PTVE is slated to report its fourth-quarter 2023 results on Feb 29, after market close.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by a whopping 190.9%. The top line declined, while the bottom line grew on a year-over-year basis.

PTVE’s earnings surpassed expectations in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 127.2%.

How Are Estimates Placed?

The Zacks Consensus Estimate for fourth-quarter 2023 earnings per share has increased to 14 cents from 6 cents over the past 60 days. This suggests a 22.2% year-over-year decline from earnings of 18 cents.

Pactiv Evergreen Inc. Price and EPS Surprise

 

Pactiv Evergreen Inc. Price and EPS Surprise

Pactiv Evergreen Inc. price-eps-surprise | Pactiv Evergreen Inc. Quote

The consensus mark for net revenues is pegged at $1.28 billion, suggesting a decline of 13% from the prior year reported figure of $1.48 billion.

Key Factors to Consider

Pactiv Evergreen's fourth-quarter performance is likely to have benefited from strong Foodservice segment performance, beverage merchandising restructuring and product innovations. This and the emphasis on portfolio optimizations by exiting non-core businesses and reallocating resources to core markets are likely to have aided the company’s performance in the to-be reported quarter.

The successful implementation of the Pactiv Evergreen Production System and the optimization of its manufacturing and distribution network are expected to have driven improvements in fourth-quarter margins and free cash flow.

The company anticipates fiscal 2023 adjusted EBITDA to be between $825 million and $835 million compared with the prior expectations of $775 million to $800 million. Similarly, free cash flow is anticipated to exceed $250 million.

Lingering impacts from the closure of the North Carolina mill, Canton, (under the Food and Beverage Merchandising segment) are likely to have negatively impacted the company’s performance in the fourth reported quarter.

Higher interest rates and elevated inflation are expected to have negatively influenced customers’ purchasing decisions and order patterns in the to-be reported quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Pactiv Evergreen this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.

Earnings ESP: Pactiv Evergreen has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: PTVE currently sports a Zacks Rank of 1.

Stocks Poised to Beat on Earnings

Here are some  companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.

H World Group Limited HTHT presently has an Earnings ESP of +21.31% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

HTHT’s earnings for the to-be-reported quarter are expected to surge by a whopping 616.7%. The company reported better-than-expected earnings in three of the trailing four quarters, the average surprise being 94.5%.

PVH Corp. PVH currently has an Earnings ESP of +1.43% and a Zacks Rank of 2.

PVH’s earnings for the to-be-reported quarter are expected to increase 46.6%. Notably, the company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 18.9%.

Guess?, Inc. GES has an Earnings ESP of +4.25% and a Zacks Rank of 3 at present.

GES is expected to register a 10.9% decline in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 43.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Just Released: Zacks Top 10 Stocks for 2024

Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.

See New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Guess?, Inc. (GES) : Free Stock Analysis Report

PVH Corp. (PVH) : Free Stock Analysis Report

H World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis Report

Pactiv Evergreen Inc. (PTVE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.