Packaging Corp. of America
The 10-second takeaway
For the quarter ended March 31 (Q1), Packaging Corp. of America beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins improved, net margins contracted.
Packaging Corp. of America reported revenue of $671.3 million. The nine analysts polled by S&P Capital IQ anticipated sales of $659.7 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $629.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.42. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS of $0.18 for Q1 were 51% lower than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.6%, 40 basis points better than the prior-year quarter. Operating margin was 25.2%, 1,470 basis points better than the prior-year quarter. Net margin was 2.7%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $676.5 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $2.70 billion. The average EPS estimate is $1.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 169 members out of 181 rating the stock outperform, and 12 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Packaging Corp. of America a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Packaging Corp. of America is outperform, with an average price target of $32.08.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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