Packaging Corporation of America (PKG - Free Report) delivered adjusted earnings per share of $2.04 in second-quarter 2019, in line with the Zacks Consensus Estimate. The reported figure declined 2% year over year. Earnings came in below management’s guidance of $2.05 per share. Earnings declined due to higher operating and converting costs, lower volume in Paper segment and higher annual outage expenses. However, these were partly offset by higher volume in the Packaging segment, favorable price and mix, elevated prices in the Paper segment and lower conversion costs in the Wallula mill.
Sales for the April-June quarter went down to $1.76 billion from the prior-year quarter’s $1.77 billion. The reported figure, however, lagged the Zacks Consensus Estimate of $1.79 billion.
Cost of products sold edged down 1.1% year over year to $1.33 billion in the reported quarter. Gross profit inched up around 1.7% to $428 million from the $420.6 million witnessed in the prior-year quarter. Selling, general and administrative expenses flared up 4.3% to $143.7 million from the $137.7 million incurred in the year-ago quarter.
Packaging Corporation of America Price, Consensus and EPS Surprise