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.
Can your retirement portfolio provide you with enough income to last? You'll need more than Packaging Corp. of America. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Packaging Corp. of America to My Watchlist.
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.