LAKE FOREST - Packaging (NYSE:PKG) Corporation of America (NYSE: PKG) has reported a second quarter net income of $199 million, or $2.21 per share, with adjusted earnings per share (EPS) at $2.20, surpassing analyst expectations of $2.12. The stock saw a modest uptick of 0.9% following the earnings release.
The company's revenue also exceeded forecasts, coming in at $2.08 billion against the consensus estimate of $2.03 billion, marking a significant increase from $2.0 billion in the same quarter the previous year.
Despite the positive results, the adjusted EPS saw a decline of $0.11 from the second quarter of 2023, primarily due to lower prices and mix in both the Packaging and Paper segments, alongside higher operating costs and a slight increase in the tax rate. These were partially offset by a robust volume growth in the Packaging segment, which achieved a 9.2% increase in corrugated products shipments per day and a 10.9% total shipment rise with one additional shipping day compared to last year.
Chairman and CEO Mark W. Kowlzan highlighted the strong market conditions in the Packaging segment, which led to record containerboard production and corrugated shipments. He also noted the company's proactive measures to mitigate inflationary cost increases through efficiency initiatives and capital projects.
Looking forward to the third quarter, Kowlzan anticipates further price and mix improvements in the Packaging and Paper segments, along with a potential new record for shipments-per-day. The company expects third quarter earnings to be $2.45 per share, which is a forward guidance indicating continued growth momentum.
Packaging Corporation of America is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America, operating eight mills and 86 corrugated products plants and related facilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.