Packaging Corp Q2 Profit Drops 20% Despite Revenue Beat; Shares Fall 2.7%
PKG sits 17% above its 52-week low of $189.03 on elevated volume (2.1× avg).
Summary
Packaging Corp of America reported Q2 adjusted EPS of $2.35, beating estimates by 4 cents, but GAAP profit fell 20% to $192.1M on higher costs including facility closures and acquisition charges. Revenue rose 14.7% to $2.49B, in line with expectations. The company guided Q3 adjusted EPS to $2.91, slightly below the $2.94 consensus. Shares dropped 2.7% after hours. This follows a Q1 where adjusted EPS grew 3.9% excluding special items, but cost pressures are now eroding profitability. The after-hours decline suggests the market is focusing on the profit miss and soft guidance rather than the revenue beat.
At the time of this announcement, PKG was trading at $222.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $20.3B. The 52-week trading range was $189.03 to $249.51. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.