Stock Story -
Packaging Corporation of America (NYSE:PKG) will be reporting earnings tomorrow after market hours. Here's what to look for.
Packaging Corporation of America beat analysts' revenue expectations by 3.7% last quarter, reporting revenues of $1.98 billion, flat year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' volume estimates and a narrow beat of analysts' earnings estimates.
Is Packaging Corporation of America a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Packaging Corporation of America's revenue to grow 3.7% year on year to $2.02 billion, a reversal from the 12.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Packaging Corporation of America has missed Wall Street's revenue estimates five times over the last two years.
Looking at Packaging Corporation of America's peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Badger Meter delivered year-on-year revenue growth of 23.2%, beating analysts' expectations by 6.5%, and Apogee reported a revenue decline of 8.3%, in line with consensus estimates. Apogee traded up 6.6% following the results.
Read the full analysis of Badger Meter's and Apogee's results on StockStory.
There has been positive sentiment among investors in the industrials segment, with share prices up 4.5% on average over the last month. Packaging Corporation of America's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $184.2 (compared to the current share price of $191.21).
