PCA(US:PKG) ZACKSยท2024-07-24 17:11Core 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]