As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the industrial packaging industry, including Sealed Air (NYSE: SEE) 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 3.4% on average since the latest earnings results.
Sealed Air (NYSE: SEE)
Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Sealed Air reported revenues of $1.27 billion, down 4.3% year on year. This print exceeded analysts’ expectations by 0.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Sealed Air scored the highest full-year guidance raise of the whole group. The stock is up 16.8% since reporting and currently trades at $32.15.
Is now the time to buy Sealed Air? 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 scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $53.46.
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 12.1% since the results and currently trades at $22.24.
Read our full analysis of Graphic Packaging Holding’s results here.
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 topped analysts’ expectations by 1.5%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 9.4% since reporting and currently trades at $98.20.
Read our full, actionable report on Crown Holdings 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 result beat analysts’ expectations by 1.5%. It was a strong quarter as it also recorded a solid beat of analysts’ sales volume estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 4.3% since reporting and currently trades at $194.50.
Read our full, actionable report on Packaging Corporation of America here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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