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What's in Store for Packaging Corporation's (PKG) Q4 Earnings?
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Packaging Corporation of America (PKG - Free Report) is set to release fourth-quarter 2020 results, after the closing bell on Jan 27.
Q3 Results
In the last reported quarter, Packaging Corporation’s earnings and revenues beat the Zacks Consensus Estimate. However, both the top and bottom lines declined year over year. Higher volumes in Packaging segment, lower operating costs, and softer converting and other costs were offset by lower prices and mix in the Packaging and Paper segments, dismal volumes in the Paper segment, and higher scheduled maintenance outage costs.
Q4 Estimates
The Zacks Consensus Estimate for Packaging Corporation’s fourth-quarter earnings is currently pegged at $1.41, suggesting a decline of 17.5% from the prior-year quarter. The Zacks Consensus Estimate for total sales stands at $1.71 billion, indicating a dip of 0.5% from the year-ago quarter. The Zacks Consensus Estimate for the company’s fourth-quarter earnings moved north over the past 30 days.
The company has surpassed earnings estimates in three of the trailing four quarters and matched the same once. It has a trailing four-quarter earnings surprise of 12.1%, on average.
Packaging Corporation of America Price and EPS Surprise
Packaging products are essential for the distribution of food, beverage and pharmaceutical products. Hence, the elevated demand for meat, fruit and vegetables, processed food, beverages, medicine, and other consumer products owing to the coronavirus crisis is expected to have aided the company’s Packaging segment’s fourth-quarter performance.
The company has been gaining from demand for packaging led by the e-commerce boom. Additionally, the pandemic has been fueling e-commerce growth as consumers’ demand for online grocery, beverage and pharmaceuticals delivery services has been increasing, following travel restrictions imposed by governments worldwide. These factors might have contributed to the company’s fourth quarter performance.
Meanwhile, the pandemic has affected paper consumption in schools, offices and businesses, straining paper demand. Also, the paper segment continues to bear the brunt of bleak uncoated freesheet market. Further, the segment has been bearing the brunt of weak paper demand due to increasing preference for electronic data transmission, e-readers and electronic document storage alternatives. These are likely to get reflected in the company’s results for the quarter to be reported.
What Our Model Indicates
Our proven model predicts an earnings beat for Packaging Corporation this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Packaging Corporation is +1.98%.
Zacks Rank: Packaging Corporation currently carries a Zacks Rank #3.
Price Performance
In a year’s time, shares of Packaging Corporation have gained 32.4% compared with the industry’s growth of 12.6%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other Industrial Products stocks, which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Dover Corporation (DOV - Free Report) has an Earnings ESP of +5.55% and a Zacks Rank #2.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +2.90% and a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
What's in Store for Packaging Corporation's (PKG) Q4 Earnings?
Packaging Corporation of America (PKG - Free Report) is set to release fourth-quarter 2020 results, after the closing bell on Jan 27.
Q3 Results
In the last reported quarter, Packaging Corporation’s earnings and revenues beat the Zacks Consensus Estimate. However, both the top and bottom lines declined year over year. Higher volumes in Packaging segment, lower operating costs, and softer converting and other costs were offset by lower prices and mix in the Packaging and Paper segments, dismal volumes in the Paper segment, and higher scheduled maintenance outage costs.
Q4 Estimates
The Zacks Consensus Estimate for Packaging Corporation’s fourth-quarter earnings is currently pegged at $1.41, suggesting a decline of 17.5% from the prior-year quarter. The Zacks Consensus Estimate for total sales stands at $1.71 billion, indicating a dip of 0.5% from the year-ago quarter. The Zacks Consensus Estimate for the company’s fourth-quarter earnings moved north over the past 30 days.
The company has surpassed earnings estimates in three of the trailing four quarters and matched the same once. It has a trailing four-quarter earnings surprise of 12.1%, on average.
Packaging Corporation of America Price and EPS Surprise
Packaging Corporation of America price-eps-surprise | Packaging Corporation of America Quote
Factors to Note
Packaging products are essential for the distribution of food, beverage and pharmaceutical products. Hence, the elevated demand for meat, fruit and vegetables, processed food, beverages, medicine, and other consumer products owing to the coronavirus crisis is expected to have aided the company’s Packaging segment’s fourth-quarter performance.
The company has been gaining from demand for packaging led by the e-commerce boom. Additionally, the pandemic has been fueling e-commerce growth as consumers’ demand for online grocery, beverage and pharmaceuticals delivery services has been increasing, following travel restrictions imposed by governments worldwide. These factors might have contributed to the company’s fourth quarter performance.
Meanwhile, the pandemic has affected paper consumption in schools, offices and businesses, straining paper demand. Also, the paper segment continues to bear the brunt of bleak uncoated freesheet market. Further, the segment has been bearing the brunt of weak paper demand due to increasing preference for electronic data transmission, e-readers and electronic document storage alternatives. These are likely to get reflected in the company’s results for the quarter to be reported.
What Our Model Indicates
Our proven model predicts an earnings beat for Packaging Corporation this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Packaging Corporation is +1.98%.
Zacks Rank: Packaging Corporation currently carries a Zacks Rank #3.
Price Performance
In a year’s time, shares of Packaging Corporation have gained 32.4% compared with the industry’s growth of 12.6%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other Industrial Products stocks, which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dover Corporation (DOV - Free Report) has an Earnings ESP of +5.55% and a Zacks Rank #2.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +2.90% and a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>