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Packaging Corporation of America (PKG) Q1 Earnings Report Preview: What To Look For

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Packaging Corporation of America (NYSE: PKG) will be reporting results this Wednesday after the bell. Here’s what you need to know.

Packaging Corporation of America missed analysts’ revenue expectations last quarter, reporting revenues of $2.36 billion, up 10.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Is Packaging Corporation of America a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Packaging Corporation of America’s revenue to grow 12.9% year on year, improving from the 8.2% increase it recorded in the same quarter last year.

Packaging Corporation of America Total Revenue

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 multiple times over the last two years.

Looking at Packaging Corporation of America’s peers in the industrials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 4.4%, and FedEx reported revenues up 8.3%, topping estimates by 2.1%. Richardson Electronics traded up 22.7% following the results while FedEx’s stock price was unchanged.

Read our full analysis of Richardson Electronics’s results here and FedEx’s results here.

There has been positive sentiment among investors in the industrials segment, with share prices up 11.6% on average over the last month. Packaging Corporation of America is up 2.1% during the same time and is heading into earnings with an average analyst price target of $224.40 (compared to the current share price of $213.42).

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