Consumer packaging solutions provider Graphic Packaging Holding (NYSE: GPK) will be reporting earnings tomorrow before market hours. Here’s what to expect.
Graphic Packaging Holding missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $2.24 billion, down 6.5% year on year. It was a mixed quarter for the company, with optimistic earnings guidance for the full year but a miss of analysts’ volume estimates.
Is Graphic Packaging Holding a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Graphic Packaging Holding’s revenue to decline 3% year on year to $2.28 billion, improving from the 4.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.69 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 9 analysts). Graphic Packaging Holding has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Graphic Packaging Holding’s peers in the industrial packaging segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Packaging Corporation of America delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 4.4%, and Crown Holdings reported flat revenue, in line with consensus estimates. Packaging Corporation of America traded up 5.4% following the results while Crown Holdings was also up 4.2%.
Read our full analysis of Packaging Corporation of America’s results here and Crown Holdings’s results here.
Investors in the industrial packaging segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Graphic Packaging Holding’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $32.94 (compared to the current share price of $29.66).
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