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What's in Store for Graphic Packaging (GPK) in Q2 Earnings?

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Graphic Packaging Holding Company (GPK - Free Report) is scheduled to report second-quarter 2023 results, before the opening bell, on Aug 1.

Q1 Estimates

The Zacks Consensus Estimate for second-quarter total sales is pegged at $2.48 billion, suggesting growth of 5.2% from the prior-year quarter’s reported figure. The consensus mark for the company’s earnings per share is pinned at 75 cents, indicating a year-over-year increase of 25%. The estimate has moved down 3% over the past 30 days.

Q1 Performance

Graphic Packaging’s revenues and earnings increased year over year in the first quarter of 2023. The company also beat the Zacks Consensus Estimate on both counts. GPK has a trailing four-quarter earnings surprise of 13.7%, on average.


Factors at Play

GPK’s focus on innovation in fiber-based consumer packaging solutions has been boosting demand and drove a third consecutive year of net organic sales growth in 2022, which was above the high end of the company’s targeted range. This has continued this year as well and is expected to have contributed to sales growth in the second quarter.

The state-of-the-art coated recycled paperboard machine in Kalamazoo, MI has successfully ramped production and has outperformed expectations for quality, yield and financial contributions. It is expected to deliver $130 million in incremental, annual EBITDA.

These factors, along with favorable volume mix and price realization, are likely to have boosted the company’s earnings in the second quarter of 2023. However, elevated input and labor costs are likely to have somewhat dented these gains in the quarter. Nevertheless, the company’s significant investments across its business continue to result in quality and production cost advantage, which are expected to have negated this impact.

What the Zacks Model Indicates

Our proven model does not conclusively predict an earnings beat for Graphic Packaging this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.

You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Earnings ESP: GPK has an Earnings ESP of -1.38%.

Zacks Rank: The company currently carries a Zacks Rank # 4 (Sell).

Price Performance

Graphic Packaging’s shares have gained 10.1% in the past year against the industry’s 3.7% fall.


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Image Source: Zacks Investment Research

Stocks to Consider

Here are some Industrial Products stocks, which according to our model, have the right combination of elements to beat on earnings in their upcoming releases.

EnerSys (ENS - Free Report) , set to report earnings on Aug 9, has an Earnings ESP of +8.32% and sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ENS’ fiscal first-quarter earnings is pegged at $1.64 per share, suggesting a year-over-year improvement of 42.6%. The company has a trailing four-quarter surprise of 9%, on average.

AptarGroup, Inc. (ATR - Free Report) , scheduled to release earnings on Jul 27, has an Earnings ESP of +1.77% and a Zacks Rank of 2.

The Zacks Consensus Estimate for ATR’s earnings for the second quarter is pegged at $1.13 per share. The company has a trailing four-quarter surprise of 6.4%, on average.

Eaton Corporation plc (ETN - Free Report) , set to release earnings on Aug 1, has an Earnings ESP of +0.18% and a Zacks Rank of 2.

The consensus estimate for ETN’s earnings for the second quarter is pegged at $2.11 per share. The company has a trailing four-quarter surprise of 2.5%, on average.

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


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