Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Packaging Corp. (PKG) , which belongs to the Zacks Containers - Paper and Packaging industry, could be a great candidate to consider. This maker of containerboard and corrugated packaging products has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the ...

The Zacks Consensus Estimate for PKG's second-quarter revenues is pegged at $2.01 billion, indicating 3.1% growth from the year-ago reported figure. | --- | --- | --- | --- | --- | |---------|--------------------------------------|-------|-------|-------| | | de Consensus Estimate Trend (60 \nQ1 | Q2 | F1 | F2 | | Current | 2.11 | 2.33 | 8.33 | 9.29 | | | 2.10 | 2.33 | 8.33 | 9.29 | | | 2.10 | 2.33 | 8.27 | 9.19 | | | 2.10 | 2.33 | 8.27 | 9.18 | Solid Earnings Surprise History | --- | --- | --- | --- | --- ...

Core Viewpoint - The upcoming earnings report for Packaging Corp. is anticipated to influence stock movement, with better-than-expected results likely to drive the stock higher, while disappointing results may lead to a decline [1]. Revenue Expectations - Revenues for the upcoming quarter are projected to be $2.01 billion, reflecting a year-over-year increase of 3.1% [2]. Earnings Per Share (EPS) Estimates - The consensus EPS estimate for the quarter remains unchanged over the last 30 days, indicating a stable reassessment by analysts [3]. - Packaging Corp. is expected to report quarterly earnings of $2.11 per share, which represents a year-over-year decline of 8.7% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that Packaging Corp. is likely to beat the consensus EPS estimate, with a positive Earnings ESP of +0.67% [22]. - The company has a strong track record, having beaten consensus EPS estimates in the last four quarters [24]. Analyst Sentiment - Analysts have recently become more optimistic about Packaging Corp.'s earnings prospects, as indicated by the Most Accurate Estimate being higher than the Zacks Consensus Estimate [22]. - The stock currently holds a Zacks Rank of 2, suggesting a favorable outlook [16]. Market Context - Wall Street anticipates a year-over-year decline in earnings despite higher revenues for the quarter ended June 2024, making the comparison of actual results to estimates crucial for stock price movement [10]. - The sustainability of any immediate price changes will largely depend on management's commentary during the earnings call [11].

In December 2021, the company acquired all assets of Advanced Packaging Corporation in a cash-free transaction. PKG acquired a full-line 500,000-square-foot corrugated products facility located in Grand Rapids, MI. The deal supported Packaging Corp's focus on enhancing its containerboard portfolio through organic box volume growth and strategic box plant acquisitions. Following the buyout, PKG's containerboard integration increased almost 80,000 tons. This enhanced its mill capacity and box plant operations ...

Have you been paying attention to shares of Packaging Corp. (PKG) ? Shares have been on the move with the stock up 3.3% over the past month. The stock hit a new 52-week high of $191.39 in the previous session. Packaging Corp. has gained 16.5% since the start of the year compared to the 4.8% move for the Zacks Industrial Products sector and the 7.1% return for the Zacks Containers - Paper and Packaging industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, a ...

Packaging Corporation of America (PKG) has been gaining from strong growth in e-commerce activities that continue to support packaging demand. Stable demand for food, beverages, medication and other consumer products bodes well for the Packaging segment. However, higher labor costs and planned annual outages mills will dent its results in 2024. The fall in reported benchmark pricing that took place late in 2023, with export prices remaining relatively unchanged, will impact margins. Demand in E-Commerce to ...

Core Viewpoint - ParcelPal Logistics Inc. is currently under a management cease trade order (MCTO) due to delays in filing its audited annual financial statements for the fiscal year ended December 31, 2023, which were originally due on April 29, 2024 [1][2]. Group 1: Management Cease Trade Order (MCTO) - The MCTO prohibits trading in the company's capital by the CEO and CFO until the required filings are completed and the MCTO is lifted [2]. - Other shareholders are not affected by the MCTO and can continue trading in the company's securities [2]. Group 2: Financial Filings Status - The preparation of the annual filings is impacting the timely completion of the interim financial statements for the three months ended March 31, 2024, which are due by May 30, 2024 [3]. - The company is working with newly appointed auditors to complete both the annual and interim filings as soon as possible, with an anticipated filing date on or before June 28, 2024 [4]. Group 3: Compliance and Reporting - Since the announcement of the MCTO, there have been no material changes to the information disclosed, and the company has not failed to meet its stated intentions regarding alternative information guidelines [5]. - The company will continue to issue bi-weekly default status reports until the required filings are posted and the MCTO is lifted [6]. Group 4: Company Overview - ParcelPal Logistics Inc. is based in Vancouver, British Columbia, and specializes in last-mile delivery services and logistics solutions across various sectors, including pharmacy, meal kit deliveries, retail, and groceries [7].

[PART I - Financial Information](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated financial statements for Q1 2024, detailing a year-over-year decrease in net income despite stable net sales [Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q1 2024 net sales remained flat year-over-year, while higher costs led to a decline in net income and earnings per share Q1 2024 vs. Q1 2023 Income Statement Highlights | Metric | Q1 2024 ($M) | Q1 2023 ($M) | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | 1,979.5 | 1,976.3 | +0.2% | | Gross profit | 370.4 | 431.4 | -14.1% | | Income from operations | 196.0 | 270.7 | -27.6% | | Net income | 146.9 | 190.1 | -22.7% | | Diluted EPS ($) | 1.63 | 2.11 | -22.7% | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased slightly to $8.86 billion, supported by a rise in cash and cash equivalents Balance Sheet Summary | Metric | March 31, 2024 ($M) | Dec 31, 2023 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 692.4 | 648.0 | | Total current assets | 3,445.1 | 3,254.4 | | Total assets | 8,857.0 | 8,681.1 | | Total current liabilities | 1,400.3 | 1,265.7 | | Total liabilities | 4,826.0 | 4,683.8 | | Total stockholders' equity | 4,031.0 | 3,997.3 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $260.4 million in Q1 2024 due to lower net income Q1 2024 vs. Q1 2023 Cash Flow Summary | Cash Flow Activity | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | Net cash from operating activities | 260.4 | 280.4 | | Net cash used for investing activities | (81.0) | (115.4) | | Net cash used for financing activities | (135.0) | (117.3) | | Net increase in cash | 44.4 | 47.7 | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) Provides key disclosures on revenue disaggregation, litigation accruals, segment performance, and major customers Revenue by Product Line (Q1 2024 vs Q1 2023) | Product Line | Q1 2024 Revenue ($M) | Q1 2023 Revenue ($M) | | :--- | :--- | :--- | | Packaging | 1,798.3 | 1,808.6 | | Paper | 163.8 | 150.9 | | Corporate and Other | 17.4 | 16.8 | | **Total revenue** | **1,979.5** | **1,976.3** | - A jury awarded plaintiffs approximately **$91.8 million** in damages related to the 2017 DeRidder mill incident, for which the company recorded a **$123.7 million** accrual and a corresponding insurance receivable[89](index=89&type=chunk)[93](index=93&type=chunk) Segment Operating Income (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Operating Income ($M) | Q1 2023 Operating Income ($M) | | :--- | :--- | :--- | | Packaging | 203.8 | 268.0 | | Paper | 29.7 | 34.1 | | Corporate and Other | (37.5) | (31.4) | - ODP Corporation is the largest customer in the Paper segment, accounting for approximately **58%** of the segment's sales and **5%** of total company sales in Q1 2024[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q1 net income decrease to lower prices and higher costs, despite stable sales and strong volumes [Executive Summary](index=25&type=section&id=Executive%20Summary) Q1 2024 net income declined to $147 million, driven by lower prices and higher costs that were partially offset by stronger sales volumes Q1 Earnings Per Share (Reported vs. Excluding Special Items) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Earnings per diluted share, as reported | $1.63 | $2.11 | | Earnings per diluted share, excluding special items | $1.72 | $2.20 | - Packaging segment EBITDA (excluding special items) decreased to **$326 million** from **$392 million** YoY, due to lower prices and higher outage expenses, despite an **11.0%** per workday increase in corrugated products shipments[98](index=98&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Flat net sales resulted from higher volumes in both segments being offset by pricing pressure in the Packaging segment - Packaging segment's corrugated products shipments increased **9.2%** in total and **11.0%** per workday compared to Q1 2023[108](index=108&type=chunk) - Paper segment sales increased due to higher volume (**$23 million**), which was partially offset by lower prices and mix (**$10 million**)[109](index=109&type=chunk) - The effective tax rate decreased to **21.6%** in Q1 2024 from **24.9%** in Q1 2023, primarily due to higher excess tax benefits from employee stock awards[118](index=118&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $692 million in cash and projects capital expenditures of $470-$490 million for 2024 - At quarter-end, the company had **$692 million** of cash and cash equivalents and **$323 million** of unused borrowing capacity under its revolving credit facility[119](index=119&type=chunk) - Capital investments for 2024 are expected to be between **$470 million** and **$490 million**[124](index=124&type=chunk) - During Q1 2024, the company paid **$112.0 million** in dividends to shareholders[125](index=125&type=chunk) [Outlook](index=26&type=section&id=Outlook) Management anticipates higher Q2 earnings driven by strong demand and improved pricing in the Packaging segment - Packaging segment: Expects continued strong demand, higher shipments, and higher prices and mix in Q2[105](index=105&type=chunk) - Paper segment: Orders are expected to remain strong, but volume will be lower due to a scheduled maintenance outage[105](index=105&type=chunk) - Overall, the company expects **second-quarter earnings to be higher** than the first quarter[105](index=105&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposure is primarily from commodity prices and interest rates, mitigated by 100% fixed-rate debt - As of March 31, 2024, **100%** of PCA's outstanding debt is at fixed interest rates, minimizing exposure to interest rate fluctuations[133](index=133&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of March 31, 2024[144](index=144&type=chunk) - **No material changes** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) [PART II - Other Information](index=37&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates disclosures from Note 19 regarding the DeRidder Mill incident litigation - Information regarding legal proceedings is detailed in **Note 19** of the financial statements, which discusses the DeRidder Mill incident litigation[148](index=148&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K - There have been **no material changes** to the risk factors disclosed in the company's 2023 Annual Report on Form 10-K[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in Q1 2024, with $436.0 million remaining under the authorized buyback program - The company **did not repurchase any shares** of its common stock under its authorized plan during Q1 2024[78](index=78&type=chunk)[150](index=150&type=chunk) - A total of **126,367 shares** were withheld from employees to cover income and payroll taxes on vested equity awards[150](index=150&type=chunk) - As of March 31, 2024, **$436.0 million** remained available for future repurchases under the company's stock repurchase program[78](index=78&type=chunk)[150](index=150&type=chunk)

Financial Data and Key Metrics Changes - First quarter net income was $147 million or $1.63 per share, down from $198 million or $2.20 per share in the first quarter of 2023, with adjusted net income of $155 million or $1.72 per share excluding special items [90] - Total company EBITDA for the first quarter was $333 million in 2024 compared to $405 million in 2023 [90] - The decrease in earnings per share was primarily driven by lower prices and mix in the Packaging segment and Paper segment, higher scheduled mill outage expenses, and increased depreciation [3][16] Business Line Data and Key Metrics Changes - In the Packaging segment, EBITDA excluding special items was $326 million with sales of $1.8 billion, resulting in a margin of 18.1%, down from 21.7% in the previous year [5] - Corrugated product shipments per workday increased by 11%, and total shipments were up 9.2% compared to the first quarter of 2023 [7] - In the Paper segment, EBITDA was $41 million with sales of $164 million, resulting in a margin of 25%, down from 27% in the previous year [11] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices and mix increased slightly from the fourth quarter of 2023, but were down $1.19 per share compared to the first quarter of 2023 [8] - Export containerboard prices and mix were down $0.14 per share compared to the first quarter of 2023 [8] - The order backlog remained strong despite challenges from inflation and higher interest rates [7] Company Strategy and Development Direction - The company continues to focus on capital spending and optimization strategies within its box plant system to enhance revenue growth and customer service [9] - The company expects to build inventories back to targeted levels by the end of the second quarter [5] - The management emphasized the importance of aligning investments with customer needs to drive growth [41] Management Comments on Operating Environment and Future Outlook - Management expects continued strong demand and higher shipments in the Packaging segment, with anticipated price increases [16] - The Paper segment is expected to see strong orders, but volumes may be impacted by a scheduled maintenance outage [16] - Operating and converting costs are expected to be slightly lower, but freight and logistics expenses will increase due to rail rate hikes [17] Other Important Information - Cash provided by operations totaled $260 million, with free cash flow reaching a record $184 million for the first quarter [14] - The company revised its estimated cost impact of scheduled mill outages for the year to $0.89 per share, down from $0.96 per share previously [14] Q&A Session Summary Question: Early trends in bookings and billings for Q2 - Bookings remain strong, up 8% as of now, with expectations for a strong second quarter [22] Question: Vertical integration and business mix - Vertical integration in Q1 was around 90%, slightly below the previous quarter [24] Question: EBITDA margin loss explanation - The margin gap was attributed to delayed price increases and persistent inflation affecting costs [31][32] Question: Demand improvement in specific sectors - Demand improved across various segments, including e-commerce, agriculture, food, and heavy manufacturing [38] Question: Future capital expenditures - Full-year capital expenditures are expected to be in the high $400 million range, with ongoing investments in box plants [52] Question: Pricing mechanisms and inflation - The company is exploring various pricing mechanisms with customers to address inflationary pressures [70] Question: Competitive landscape changes due to mergers - Management does not foresee significant changes in the domestic marketplace due to competitors' mergers [86]

Reported earnings in the first quarter of 2024 include special items primarily for certain costs at the Jackson, AL mill for paper-to- containerboard conversion related activities. Excluding special items, the ($.48) per share decrease in first quarter 2024 earnings compared to the first quarter of 2023 was driven primarily by lower prices and mix in the Packaging segment ($1.33) and Paper segment ($.08), higher scheduled mill outage expenses ($.10), higher depreciation ($.03), higher expenses related to co ...