Packaging Corp Q3 adjusted EPS beats estimates on acquired Greif operations

Packaging of America

Yesterday 22:38

Overview
US containerboard and paper maker's Q3 sales rose yr/yr but slightly missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations, driven by favorable price and mix in Packaging
Company expects Q4 earnings to decline due to higher maintenance outage and freight costs

Outlook
Company expects Q4 earnings of $2.81 per share, excluding special items
Packaging Corp anticipates solid corrugated products demand with some seasonal improvement in Q4
Company expects higher freight, recycled fiber, wood fiber, chemicals and energy costs in Q4

Result Drivers
GREIF ACQUISITION - Co said higher earnings from acquired Greif operations contributed to yr/yr earnings growth
PRICE AND MIX - Favorable price and mix in Packaging segment drove higher earnings, per co
COST PRESSURES - Higher labor, freight, fiber, and energy costs partially offset earnings gains

Company press release: ID:nBw3pR5t5a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Miss*
$2.60 bln
$2.61 bln (8 Analysts)
Q3 Adjusted EPS
Beat
$3.04
$2.92 (8 Analysts)
Q3 EPS
 
$2.93
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy"
Wall Street's median 12-month price target for Packaging Corp of America is $260.00, about 8.8% above its October 21 closing price of $239.00
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
Oct 19 - Silgan and American Industrial to buy Trivium Packaging in $3.4 billion deal
Oct 21 - Sonoco Products Q3 sales miss estimates on lower volume, weak food can demand
Oct 20 - Copper tube maker Mueller Industries' Q3 revenue rises on higher volumes

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)