Packaging Corporation of America
The 10-second takeaway
For the quarter ended June 30 (Q2), Packaging Corporation of America beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Packaging Corporation of America reported revenue of $800.2 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $767.3 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $712.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.71. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. Non-GAAP EPS of $0.71 for Q2 were 45% higher than the prior-year quarter's $0.49 per share. GAAP EPS of $0.66 for Q2 were 43% higher than the prior-year quarter's $0.46 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 24.0%, 180 basis points better than the prior-year quarter. Operating margin was 13.4%, 160 basis points better than the prior-year quarter. Net margin was 8.1%, 180 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $815.2 million. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $3.14 billion. The average EPS estimate is $2.95.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 191 members out of 204 rating the stock outperform, and 13 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Packaging Corporation of America a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Packaging Corporation of America is hold, with an average price target of $47.00.
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