Packaging Corporation of America (PKG) Reports Q2: Everything You Need To Know Ahead Of Earnings

Packaging Corporation of America (NYSE:PKG) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.

Packaging Corporation of America missed analysts’ revenue expectations last quarter, reporting revenues of $2.37 billion, up 10.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and EPS guidance for next quarter missing analysts’ expectations.

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

This quarter, the market is expecting Packaging Corporation of America’s revenue to grow 15.2% year on year, improving from the 4.6% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Packaging Corporation of America has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Packaging Corporation of America’s peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 9.3%, and Apogee reported a revenue decline of 1.1%, topping estimates by 3.4%.

Read our full analysis of Crown Holdings’s results here and Apogee’s results here.

In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the industrials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4% on average over the last month. Packaging Corporation of America is down 2.4% during the same time and is heading into earnings with an average analyst price target of $246.20 (compared to the current share price of $228.49).

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