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The Zacks Consensus Estimate for PKG’s second-quarter revenues is pegged at $2.01 billion, indicating 3.1% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.11 per share. Of the five analysts providing estimates for the second quarter, one has raised the estimate, whereas others have kept estimates unchanged over the past 60 days. Overall, the Zacks Consensus Estimate for PKG’s second-quarter earnings has moved down 0.47% in the past 60 days. The estimate indicates a year-over-year decline of 8.7%.
Image Source: Zacks Investment Research
Solid Earnings Surprise History
Packaging Corp’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 12.8%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our model predicts an earnings beat for Packaging Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here, as you can see below.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Packaging Corp has an Earnings ESP of +0.67%.
Zacks Rank: PKG currently carries a Zacks Rank of 2.
Factors Likely to Have Shaped Q2 Performance
Packaging Corp’s second-quarter results are expected to reflect the impacts of lower prices in the Packaging segment. This was primarily led by the recent decrease in the published benchmark index grades that took place in late 2023. However, this will be partially offset by the implementation of PKG's stated January price hikes. Price and mix impacts of the Packaging segment are expected to be favorable 1.7% in the quarter, per our model.
Our model predicts the Packaging segment’s volume to increase 1.2% year over year in the quarter, indicating stable packaging demand.
The estimate for the segment’s quarterly revenues is pegged at $1.84 billion, suggesting growth of 2.8% from the year-ago quarter’s reported number. Our model estimate for the segment’s operating income is pegged at $242 million, indicating a fall of 14.6% from the prior-year reported figure.
In the Paper segment, volume is likely to continue to be be lower, and prices and mix are expected to have trended down with declines in the index prices. We expect volume to fall 4.5% year over year. We anticipate a negative pricing/mix impact of 2.2% for the second quarter. Higher operating costs, primarily labor and benefit costs, and increased energy costs are expected to have hurt the segment’s profits in the quarter under review.
The estimate for the Paper segment’s revenues is pegged at $133 million for the June-end quarter, suggesting a fall of 6.7% from the year-ago reported figure. The consensus estimate for the segment’s operating income is $25.8 million, indicating a 23% fall from the prior-year quarter’s actual.
Price Performance
Over the past year, shares of Packaging Corp have gained 42.8% compared with the industry’s 10.9% growth.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for CR’s earnings is pegged at $1.24 per share, which indicates year-over-year growth of 12.7%. It has a trailing four-quarter average surprise of 15.2%.
Ingersoll Rand Inc. (IR - Free Report) , scheduled to release its second-quarter 2024 on Jul 31, has an Earnings ESP of +1.62% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Ingersoll Rand’s second-quarter 2024 earnings is pegged at 77 cents per share, suggesting year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 12.8%.
Eaton Corporation plc (ETN - Free Report) , expected to release earnings soon, currently has an Earnings ESP of +0.42% and a Zacks Rank of 3.
The consensus estimate for Eaton’s earnings for the second quarter of 2024 is pegged at $2.61 per share, indicating year-over-year growth of 18.1%. ETN has a trailing four-quarter average surprise of 4.7%.
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What's in Store for Packaging Corp (PKG) in Q2 Earnings?
Packaging Corporation (PKG - Free Report) is set to release second-quarter 2024 results on Jul 23, after the closing bell.
The Zacks Consensus Estimate for PKG’s second-quarter revenues is pegged at $2.01 billion, indicating 3.1% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.11 per share. Of the five analysts providing estimates for the second quarter, one has raised the estimate, whereas others have kept estimates unchanged over the past 60 days. Overall, the Zacks Consensus Estimate for PKG’s second-quarter earnings has moved down 0.47% in the past 60 days. The estimate indicates a year-over-year decline of 8.7%.
Image Source: Zacks Investment Research
Solid Earnings Surprise History
Packaging Corp’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 12.8%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our model predicts an earnings beat for Packaging Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here, as you can see below.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Packaging Corp has an Earnings ESP of +0.67%.
Zacks Rank: PKG currently carries a Zacks Rank of 2.
Factors Likely to Have Shaped Q2 Performance
Packaging Corp’s second-quarter results are expected to reflect the impacts of lower prices in the Packaging segment. This was primarily led by the recent decrease in the published benchmark index grades that took place in late 2023. However, this will be partially offset by the implementation of PKG's stated January price hikes. Price and mix impacts of the Packaging segment are expected to be favorable 1.7% in the quarter, per our model.
Our model predicts the Packaging segment’s volume to increase 1.2% year over year in the quarter, indicating stable packaging demand.
The estimate for the segment’s quarterly revenues is pegged at $1.84 billion, suggesting growth of 2.8% from the year-ago quarter’s reported number. Our model estimate for the segment’s operating income is pegged at $242 million, indicating a fall of 14.6% from the prior-year reported figure.
In the Paper segment, volume is likely to continue to be be lower, and prices and mix are expected to have trended down with declines in the index prices. We expect volume to fall 4.5% year over year. We anticipate a negative pricing/mix impact of 2.2% for the second quarter. Higher operating costs, primarily labor and benefit costs, and increased energy costs are expected to have hurt the segment’s profits in the quarter under review.
The estimate for the Paper segment’s revenues is pegged at $133 million for the June-end quarter, suggesting a fall of 6.7% from the year-ago reported figure. The consensus estimate for the segment’s operating income is $25.8 million, indicating a 23% fall from the prior-year quarter’s actual.
Price Performance
Over the past year, shares of Packaging Corp have gained 42.8% compared with the industry’s 10.9% growth.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Crane Company (CR - Free Report) is scheduled to release its second-quarter results on Jul 29. It has an Earnings ESP of +0.96% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CR’s earnings is pegged at $1.24 per share, which indicates year-over-year growth of 12.7%. It has a trailing four-quarter average surprise of 15.2%.
Ingersoll Rand Inc. (IR - Free Report) , scheduled to release its second-quarter 2024 on Jul 31, has an Earnings ESP of +1.62% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Ingersoll Rand’s second-quarter 2024 earnings is pegged at 77 cents per share, suggesting year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 12.8%.
Eaton Corporation plc (ETN - Free Report) , expected to release earnings soon, currently has an Earnings ESP of +0.42% and a Zacks Rank of 3.
The consensus estimate for Eaton’s earnings for the second quarter of 2024 is pegged at $2.61 per share, indicating year-over-year growth of 18.1%. ETN has a trailing four-quarter average surprise of 4.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.