As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the industrial packaging industry, including Crown Holdings (NYSE: CCK) and its peers.
Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.
The 8 industrial packaging stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 0.9%.
In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.
Crown Holdings (NYSE: CCK)
Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Crown Holdings reported revenues of $2.89 billion, up 3.7% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
"Crown got off to an excellent start for the year, driven by strong performances in each of our global beverage can businesses," said Timothy J. Donahue, Chairman, President and Chief Executive Officer.
The stock is up 13% since reporting and currently trades at $101.41.
Is now the time to buy Crown Holdings? Access our full analysis of the earnings results here, it’s free.
Best Q1: Ball (NYSE: BALL)
Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Ball reported revenues of $3.10 billion, up 7.8% year on year, outperforming analysts’ expectations by 6.7%. The business had a stunning quarter with a solid beat of analysts’ organic revenue and adjusted operating income estimates.
Ball delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $55.15.
Is now the time to buy Ball? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Graphic Packaging Holding (NYSE: GPK)
Founded in 1991, Graphic Packaging (NYSE: GPK) is a provider of paper-based packaging solutions for a wide range of products.
Graphic Packaging Holding reported revenues of $2.12 billion, down 6.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
Graphic Packaging Holding delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 14% since the results and currently trades at $21.74.
Read our full analysis of Graphic Packaging Holding’s results here.
Avery Dennison (NYSE: AVY)
Founded as Kum Kleen Products, Avery Dennison (NYSE: AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.
Avery Dennison reported revenues of $2.15 billion, flat year on year. This number was in line with analysts’ expectations. Aside from that, it was a slower quarter as it logged EPS guidance for next quarter missing analysts’ expectations.
The stock is up 2.5% since reporting and currently trades at $179.34.
Read our full, actionable report on Avery Dennison here, it’s free.
Packaging Corporation of America (NYSE: PKG)
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.
Packaging Corporation of America reported revenues of $2.14 billion, up 8.2% year on year. This print topped analysts’ expectations by 1.5%. It was a strong quarter as it also produced a solid beat of analysts’ sales volume estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 3.7% since reporting and currently trades at $193.31.
Read our full, actionable report on Packaging Corporation of America here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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