Packaging Corp of America drops as higher costs dent qtrly profit

Packaging of America

23/10/2025 14:08

** Packaging Corp of America's PKG.N shares down 5.5% premarket to $197.28, about a two-month low, after missing Q3 profit expectations

** PKG tracking biggest one-day pct drop since Apr 3, if losses hold

** Lake Forest, Illinois corrugated and containerboard products seller late Weds posted adj EPS of $2.73 vs LSEG est. of $2.81, hit by subdued demand amid economic uncertainty and higher costs

** However, Q3 net sales of $2.31 bln were slightly above Street view of $2.30 bln

** For current qtr, co projected adj EPS of $2.40

** Of 12 analysts covering PKG, recommendation breakdown is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" rating; median PT is $222, per LSEG

** Through Weds close, stock down ~7% YTD vs S&P 500 Materials sector's .SPLRCM roughly 6% advance

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))