The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how industrial packaging stocks fared in Q4, starting with Graphic Packaging Holding (NYSE:GPK).
Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.
The 7 industrial packaging stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1%.
While some industrial packaging stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.
Graphic Packaging Holding (NYSE:GPK)
Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.Graphic Packaging Holding reported revenues of $2.10 billion, down 6.8% year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
Michael Doss, the Company’s President and CEO said, "In 2024, we demonstrated the value of the Graphic Packaging business model, generating a level of consistency and profitability in line with other leading consumer packaging companies. We delivered strong and steady margins and significant new consumer packaging innovations. Our strategic investments in capabilities, innovation, and competitive advantage have positioned the company for long-term value creation. In 2025, we will build on that success, driving competitive advantage in recycled paperboard across all of North America, and expanding our innovation capabilities into new markets and new product categories around the world.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $27.08.
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Best Q4: Crown Holdings (NYSE:CCK)
Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.Crown Holdings reported revenues of $2.90 billion, up 1.6% year on year, in line with analysts’ expectations. The business had a satisfactory quarter with EPS guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ constant currency revenue estimates.
The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $89.13.
Weakest Q4: International Paper (NYSE:IP)
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.International Paper reported revenues of $4.58 billion, flat year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
International Paper delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.5% since the results and currently trades at $56.06.
Ball (NYSE:BALL)
Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.Ball reported revenues of $2.88 billion, down 15.4% year on year. This result missed analysts’ expectations by 1.9%. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ organic revenue estimates.
Ball had the slowest revenue growth among its peers. The stock is down 9.4% since reporting and currently trades at $50.49.
Avery Dennison (NYSE:AVY)
Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.Avery Dennison reported revenues of $2.19 billion, up 3.6% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it recorded full-year EPS guidance missing analysts’ expectations.
The stock is down 4.4% since reporting and currently trades at $184.27.
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This content was originally published on Stock Story
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