Packaging Corp. (PKG) Expected to Beat Earnings Estimates: What to Know Ahead of Q2 Release

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].