Packaging Corp. (PKG) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earni ...

Shares of Packaging Corporation of America (PKG) have scaled a new 52-week high of $204.58 on Aug 23, before closing the session lower at $203.81. PKG currently has a market capitalization of $18.3 billion and flaunts a Zacks Rank #1 (Strong Buy). So far this year, Packaging Corp's shares have gained 25.1%. PKG has outperformed the industry's 14% growth and the S&P 500's 18.1% rise. Meanwhile, the Industrial Products sector has gained 7.9%. Image Source: Zacks Investment Research What's Driving the PKG Stoc ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Packaging Corp. (PKG) - Packaging Corp. currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, PKG shares increased by 1.3%, while the Zacks Containers - Paper and Packaging industry rose by 2.57% [5] - In a longer timeframe, PKG's monthly price change is 2.82%, outperforming the industry's 0.53% [5] - Over the last quarter, PKG shares have risen by 6.98%, and over the past year, they have gained 33.76%, compared to the S&P 500's increases of 5.24% and 27.74%, respectively [6] Trading Volume - PKG's average 20-day trading volume is 635,433 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 5 earnings estimates for PKG have been revised upwards, with no downward revisions, raising the consensus estimate from $8.33 to $8.71 [9] - For the next fiscal year, 4 estimates have also moved higher, indicating positive sentiment around the company's earnings potential [9]

Group 1 - Packaging Corp. (PKG) is a notable stock within the Industrial Products sector, currently ranked 11 in the Zacks Sector Rank, which includes 16 groups ranked by average Zacks Rank of individual companies [2] - The Zacks Rank model, which focuses on earnings estimates and revisions, currently rates Packaging Corp. as 1 (Strong Buy), indicating a positive earnings outlook with a 5.4% increase in the consensus estimate for full-year earnings over the past quarter [3] - Year-to-date, Packaging Corp. has returned 20.2%, significantly outperforming the average gain of 6.2% for the Industrial Products group [4] Group 2 - Packaging Corp. is part of the Containers - Paper and Packaging industry, which consists of 12 companies and is currently ranked 42 in the Zacks Industry Rank, with an average gain of 10% this year [5] - Another stock in the Industrial Products sector, Tetra Tech (TTEK), has shown a year-to-date return of 36.8% and is rated 2 (Buy) by Zacks, with a 0.7% increase in its consensus EPS estimate over the past three months [4][5] - The Pollution Control industry, to which Tetra Tech belongs, is ranked 74 and has seen a 24.3% increase this year, indicating strong performance within that specific industry [6]

Packaging Corporation of America (NYSE:PKG) Q2 2024 Earnings Conference Call July 24, 2024 9:00 AM ET Company Participants Mark Kowlzan - Chairman & Chief Executive Officer Tom Hassfurther - Executive Vice President, Corrugated Products Bob Mundy - Chief Financial Officer Conference Call Participants George Staphos - Bank of America Securities Mike Roxland - Truist Mark Weintraub - Seaport Research Partners Anthony Pettinari - Citi Gabe Hajde - Wells Fargo Philip Ng - Jefferies Charlie Muir-Sands - BNP Pari ...

Core Insights - Packaging Corporation of America (PKG) reported adjusted earnings per share (EPS) of $2.20 for Q2 2024, exceeding the Zacks Consensus Estimate of $2.12 and the company's guidance of $2.07, although it represented a 5% decrease year over year [1][2] Financial Performance - Sales for Q2 2024 increased by 6.3% year over year to $2.08 billion, surpassing the Zacks Consensus Estimate of $2.03 billion [3] - The Packaging segment's sales rose by 6.6% year over year to $1.91 billion, exceeding the estimate of $1.84 billion [4] - Adjusted operating profit was $280 million, down from $290 million in the prior-year quarter, while the estimated segmental adjusted operating income was $242 million [5] - The Paper segment's revenues were $150 million, up 5.1% year over year, beating the estimate of $133 million, with an adjusted operating profit of $26 million compared to $34 million in the previous year [14] Cost and Cash Position - Cost of products sold increased by 8.6% year over year to $1.64 billion, with gross profit falling by 1.6% to $438 million [12] - The company had a cash balance of $1.17 billion at the end of Q2 2024, up from $0.63 billion at the end of the prior-year quarter [15] Future Outlook - The company anticipates improved prices and mix for both Packaging and Paper segments in Q3 2024, driven by previously announced price hikes and higher containerboard export prices [6] - Projected EPS for Q3 2024 is $2.45 [16] - In the Paper segment, volumes are expected to decline sequentially in Q3, with higher operating and converting costs anticipated [17] Market Performance - Packaging Corp's shares have increased by 43.2% over the past year, compared to the industry's growth of 11.7% [7]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

Shares of Packaging Corp. have returned +1.9% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. For the quarter ended June 2024 ...

Packaging Corp. (PKG) came out with quarterly earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $2.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.77%. A quarter ago, it was expected that this maker of containerboard and corrugated packaging products would post earnings of $1.63 per share when it actually produced earnings of $1.72, delivering a surprise of ...

Packaging Corporation of America Q2 2024 Earnings Release [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported Q2 2024 net sales of $2.1 billion and adjusted EPS of $2.20, exceeding guidance Q2 2024 Key Financial Metrics (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,075.3 M | $1,952.1 M | +6.3% | | Net Income | $198.9 M | $202.7 M | -1.9% | | Diluted EPS (Reported) | $2.21 | $2.24 | ($0.03) | | Diluted EPS (Excluding Special Items) | $2.20 | $2.31 | ($0.11) | - The Q2 2024 diluted EPS of **$2.20** (excluding special items) was **$0.13 above the company's guidance** of $2.07 per share, driven by higher volume in the Packaging segment and lower costs[11](index=11&type=chunk) - The year-over-year decrease of $0.11 in adjusted EPS was primarily caused by lower prices and mix in both Packaging ($-0.87) and Paper ($-0.07) segments, partially offset by higher volumes[1](index=1&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Strong volume growth in the Packaging segment set a new production record, though income declined for both segments Segment Performance (Q2 2024 vs Q2 2023, $ in millions) | Segment | Net Sales (Q2 2024) | Net Sales (Q2 2023) | Segment Income (Excl. Special Items, Q2 2024) | Segment Income (Excl. Special Items, Q2 2023) | | :--- | :--- | :--- | :--- | :--- | | Packaging | $1,908.3 | $1,790.3 | $279.9 | $289.7 | | Paper | $150.1 | $142.8 | $26.1 | $33.5 | | Corporate and Other | $16.9 | $19.0 | $(30.5) | $(30.5) | - Packaging segment volumes showed significant strength with corrugated products shipments per day **increasing by 9.2% YoY** and containerboard production reaching a **record 1,281,000 tons**[30](index=30&type=chunk) - Paper segment sales volume **increased by 12%** compared to Q2 2023 but decreased by 8% compared to Q1 2024[30](index=30&type=chunk) [Management Commentary & Outlook](index=3&type=section&id=Management%20Commentary%20%26%20Outlook) Management highlighted strong market conditions and issued Q3 2024 earnings guidance of $2.45 per share - CEO Mark W. Kowlzan attributed the strong quarterly results to robust market conditions, which led to **record containerboard production** and corrugated shipment levels in June[15](index=15&type=chunk) - For Q3 2024, the company expects higher prices and continued strength in corrugated shipment volume, offset by higher seasonal operating and converting costs[31](index=31&type=chunk) - The company expects third quarter 2024 earnings of **$2.45 per share**[31](index=31&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated earnings results for the three and six months ended June 30, 2024 Consolidated Earnings Results (Unaudited, $ in millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $2,075.3 | $1,952.1 | $4,054.8 | $3,928.4 | | Gross profit | $437.7 | $444.7 | $808.1 | $876.1 | | Income from operations | $276.0 | $284.4 | $472.0 | $555.0 | | Income before taxes | $266.7 | $267.8 | $454.3 | $521.1 | | Net income | $198.9 | $202.7 | $345.9 | $392.8 | | Diluted EPS | $2.21 | $2.24 | $3.84 | $4.35 | [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP figures to non-GAAP measures like EBITDA and earnings excluding special items - Management presents non-GAAP measures to evaluate ongoing operational performance and facilitate period-over-period comparisons[3](index=3&type=chunk)[24](index=24&type=chunk) [Net Income and EPS Excluding Special Items](index=9&type=section&id=Net%20Income%20and%20EPS%20Excluding%20Special%20Items) This reconciliation adjusts reported Net Income and Diluted EPS for special items related to mill conversion and closures Q2 Reconciliation of Net Income and EPS ($ in millions, except per-share data) | Description | Income before Taxes | Income Taxes | Net Income | Diluted EPS | | :--- | :--- | :--- | :--- | :--- | | **As reported (Q2 2024)** | **$266.7** | **$(67.8)** | **$198.9** | **$2.21** | | Total special items | $(0.5) | $0.2 | $(0.3) | $0.00 | | **Excluding special items (Q2 2024)** | **$266.2** | **$(67.6)** | **$198.6** | **$2.20** | Six Months Reconciliation of Net Income and EPS ($ in millions, except per-share data) | Description | Income before Taxes | Income Taxes | Net Income | Diluted EPS | | :--- | :--- | :--- | :--- | :--- | | **As reported (YTD 2024)** | **$454.3** | **$(108.4)** | **$345.9** | **$3.84** | | Total special items | $9.7 | $(2.4) | $7.3 | $0.08 | | **Excluding special items (YTD 2024)** | **$464.0** | **$(110.8)** | **$353.2** | **$3.92** | [EBITDA and EBITDA Excluding Special Items](index=10&type=section&id=EBITDA%20and%20EBITDA%20Excluding%20Special%20Items) This table reconciles GAAP Net Income to EBITDA, showing Q2 2024 adjusted EBITDA of $404.0 million Reconciliation of Net Income to EBITDA ($ in millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income | $198.9 | $202.7 | $345.9 | $392.8 | | Interest expense, net | $10.4 | $14.6 | $19.9 | $29.9 | | Provision for income taxes | $67.8 | $65.1 | $108.4 | $128.3 | | Depreciation, amortization, and depletion | $128.5 | $127.9 | $256.9 | $257.5 | | **EBITDA** | **$404.5** | **$412.3** | **$728.9** | **$812.5** | | Special items | $(0.5) | $5.2 | $8.3 | $9.9 | | **EBITDA excluding special items** | **$404.0** | **$417.5** | **$737.2** | **$822.4** | [Segment Income to EBITDA Excluding Special Items](index=11&type=section&id=Segment%20Income%20to%20EBITDA%20Excluding%20Special%20Items) This section provides a segment-level breakdown of the reconciliation from segment income to adjusted EBITDA Packaging Segment EBITDA Reconciliation (Q2 2024 vs Q2 2023, $ in millions) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Segment income | $279.8 | $285.8 | | Depreciation, amortization, and depletion | $120.1 | $116.3 | | **EBITDA** | **$399.9** | **$402.1** | | Special Items | $0.1 | $3.2 | | **EBITDA excluding special items** | **$400.0** | **$405.3** | Paper Segment EBITDA Reconciliation (Q2 2024 vs Q2 2023, $ in millions) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Segment income | $26.7 | $29.1 | | Depreciation, amortization, and depletion | $4.5 | $7.7 | | **EBITDA** | **$31.2** | **$36.8** | | Special Items | $(0.6) | $2.0 | | **EBITDA excluding special items** | **$30.6** | **$38.8** |