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What's in Store for Packaging Corp's (PKG) Q2 Earnings?
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Packaging Corporation of America (PKG - Free Report) is set to release its second-quarter 2022 results after the closing bell on Jul 25.
Q1 Results
In the last reported quarter, Packaging Corp’s earnings and revenues beat their respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of 19.6%, on average.
Q2 Estimates
The Zacks Consensus Estimate for Packaging Corp’s second-quarter earnings per share is currently pegged at $2.87, suggesting growth of 32.2% from the prior-year quarter’s levels. The Zacks Consensus Estimate for total sales is pinned at $2.13 billion, indicating a 13.4% rise from the year-ago quarter’s levels.
Factors at Play
Packaging products are essential for distributing food, beverage and pharmaceutical products. The elevated demand for meat, fruit and vegetables, processed food, beverages, medicine and other consumer products, in response to the coronavirus pandemic, is expected to have aided the Packaging segment’s April-June quarter’s performance. This segment accounts for around 91% of the company’s revenues. Strong demand for containerboard and corrugated products is likely to have driven the segment. PKG is likely to have witnessed continued higher corrugated product shipments in the second quarter.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $1,977 million, calling for a year-over-year jump of 15%. The consensus mark for the company’s operating income is pinned at $380 million, indicating year-over-year growth of 21%.
The e-commerce boom has been driving the company’s box demand. Last year, Packaging Corp’s acquisition of a 500,000-square-foot corrugated products facility in Grand Rapids gave a boost to the company’s mill capacity and box plant operations.
The pandemic has affected paper consumption in schools, offices and businesses, straining paper demand. The paper segment has been impacted unfavorably by the dismal paper demand due to the rising preference for electronic data transmission, e-readers and electronic document storage alternatives, and the declining North American uncoated freesheet market. These are likely to be reflected in the company’s performance in the quarter to be reported.
The Zacks Consensus Estimate for the Paper segment’s revenues stands at $149 million for the June-end quarter, suggesting year-over-year growth of 5%. The Zacks Consensus Estimate for the segment’s operating income is pinned at $22.27 million, indicating an increase from the prior-year quarter’s $5.4 million. Scheduled maintenance at the International Falls mill is likely to have unfavorably impacted the segment’s sales volume.
Elevated material costs, higher freight and logistics expenses along with labor shortages, supply chain challenges and logistics constraints might have dented PKG’s margins during the second quarter.
Packaging Corporation of America Price and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for Packaging Corp 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. But that’s not the case here.
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 Corp is -0.70%.
Zacks Rank: Packaging Corp currently carries a Zacks Rank of 4 (Sell).
In a year, shares of Packaging Corp have gained 1.3% compared with the industry’s growth of 0.1%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
MRC Global Inc. (MRC - Free Report) currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%.
The Zacks Consensus Estimate for MRC Global’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.
Crane Holdings, Co. (CR - Free Report) currently has an Earnings ESP of +6.98% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.78 per share, suggesting a 2.7% decline from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $800 million, highlighting year-over-year growth of 0.5%. Crane Holdings has a trailing four-quarter earnings surprise of 22.2%, on average. It has long-term earnings growth of 8.9%.
Terex Corporation (TEX - Free Report) currently has an Earnings ESP of +4.40% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings has gone down 1.2% in the past 30 days and is currently pegged at 85 cents per share. The projection indicates a 16.7% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Terex’s quarterly revenues is pegged at $1.08 billion, which indicates a year-over-year improvement of 3.7%. TEX has a trailing four-quarter earnings surprise of 49%, on average.
Image: Bigstock
What's in Store for Packaging Corp's (PKG) Q2 Earnings?
Packaging Corporation of America (PKG - Free Report) is set to release its second-quarter 2022 results after the closing bell on Jul 25.
Q1 Results
In the last reported quarter, Packaging Corp’s earnings and revenues beat their respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of 19.6%, on average.
Q2 Estimates
The Zacks Consensus Estimate for Packaging Corp’s second-quarter earnings per share is currently pegged at $2.87, suggesting growth of 32.2% from the prior-year quarter’s levels. The Zacks Consensus Estimate for total sales is pinned at $2.13 billion, indicating a 13.4% rise from the year-ago quarter’s levels.
Factors at Play
Packaging products are essential for distributing food, beverage and pharmaceutical products. The elevated demand for meat, fruit and vegetables, processed food, beverages, medicine and other consumer products, in response to the coronavirus pandemic, is expected to have aided the Packaging segment’s April-June quarter’s performance. This segment accounts for around 91% of the company’s revenues. Strong demand for containerboard and corrugated products is likely to have driven the segment. PKG is likely to have witnessed continued higher corrugated product shipments in the second quarter.
The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $1,977 million, calling for a year-over-year jump of 15%. The consensus mark for the company’s operating income is pinned at $380 million, indicating year-over-year growth of 21%.
The e-commerce boom has been driving the company’s box demand. Last year, Packaging Corp’s acquisition of a 500,000-square-foot corrugated products facility in Grand Rapids gave a boost to the company’s mill capacity and box plant operations.
The pandemic has affected paper consumption in schools, offices and businesses, straining paper demand. The paper segment has been impacted unfavorably by the dismal paper demand due to the rising preference for electronic data transmission, e-readers and electronic document storage alternatives, and the declining North American uncoated freesheet market. These are likely to be reflected in the company’s performance in the quarter to be reported.
The Zacks Consensus Estimate for the Paper segment’s revenues stands at $149 million for the June-end quarter, suggesting year-over-year growth of 5%. The Zacks Consensus Estimate for the segment’s operating income is pinned at $22.27 million, indicating an increase from the prior-year quarter’s $5.4 million. Scheduled maintenance at the International Falls mill is likely to have unfavorably impacted the segment’s sales volume.
Elevated material costs, higher freight and logistics expenses along with labor shortages, supply chain challenges and logistics constraints might have dented PKG’s margins during the second quarter.
Packaging Corporation of America Price and EPS Surprise
Packaging Corporation of America price-eps-surprise | Packaging Corporation of America Quote
What Our Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Packaging Corp 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. But that’s not the case here.
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 Corp is -0.70%.
Zacks Rank: Packaging Corp currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
In a year, shares of Packaging Corp have gained 1.3% compared with the industry’s growth of 0.1%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
MRC Global Inc. (MRC - Free Report) currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%.
The Zacks Consensus Estimate for MRC Global’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.
Crane Holdings, Co. (CR - Free Report) currently has an Earnings ESP of +6.98% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.78 per share, suggesting a 2.7% decline from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $800 million, highlighting year-over-year growth of 0.5%. Crane Holdings has a trailing four-quarter earnings surprise of 22.2%, on average. It has long-term earnings growth of 8.9%.
Terex Corporation (TEX - Free Report) currently has an Earnings ESP of +4.40% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings has gone down 1.2% in the past 30 days and is currently pegged at 85 cents per share. The projection indicates a 16.7% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Terex’s quarterly revenues is pegged at $1.08 billion, which indicates a year-over-year improvement of 3.7%. TEX has a trailing four-quarter earnings surprise of 49%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.