Packaging Corporation of America (PKG) Q3 Earnings Report Preview: What To Look For

PKG Cover Image

Packaging Corporation of America (NYSE: PKG) will be announcing earnings results this Wednesday after market close. Hereโ€™s what you need to know.

Packaging Corporation of America missed analystsโ€™ revenue expectations by 0.8% last quarter, reporting revenues of $2.17 billion, up 4.6% year on year. It was a mixed quarter for the company, with a narrow beat of analystsโ€™ EBITDA estimates but a slight miss of analystsโ€™ revenue estimates.

Is Packaging Corporation of America a buy or sell going into earnings? Read our full analysis here, itโ€™s free for active Edge members.

This quarter, analysts are expecting Packaging Corporation of Americaโ€™s revenue to grow 6.1% year on year to $2.31 billion, slowing from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.81 per share.

Packaging Corporation of America Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Packaging Corporation of America has missed Wall Streetโ€™s revenue estimates twice over the last two years.

Looking at Packaging Corporation of Americaโ€™s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 4.2%, beating analystsโ€™ expectations by 1.5%, and Richardson Electronics reported revenues up 1.6%, topping estimates by 6%. Richardson Electronics traded up 11.4% following the results.

Read our full analysis of Crown Holdingsโ€™s results here and Richardson Electronicsโ€™s results here.

Investors in the industrials segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Packaging Corporation of America is down 3.2% during the same time and is heading into earnings with an average analyst price target of $224.20 (compared to the current share price of $205.88).

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