Looking back on industrial packaging stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including International Paper (NYSE:IP) and its peers.
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 3.5% since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
"During 2024, we initiated our strategy to deliver profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers," said Chairman and CEO Andy Silvernail.
International Paper delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 3% since reporting and currently trades at $56.30.
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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% since reporting. It currently trades at $88.42.
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, falling short of analysts’ expectations by 2.6%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
As expected, the stock is down 2.3% since the results and currently trades at $26.60.
Packaging Corporation of America (NYSE:PKG)
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.Packaging Corporation of America reported revenues of $2.15 billion, up 10.7% year on year. This result topped analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as it also produced a solid beat of analysts’ sales volume estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Packaging Corporation of America pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 10.9% since reporting and currently trades at $212.47.
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 print missed analysts’ expectations by 1.9%. It was a disappointing quarter as it also recorded 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 11.4% since reporting and currently trades at $49.33.
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This content was originally published on Stock Story
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