Graphic Packaging (GPK) Beats Q2 Earnings Estimates

Company Performance - Graphic Packaging reported quarterly earnings of $0.60 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, but down from $0.66 per share a year ago, representing an earnings surprise of 7.14% [1] - The company posted revenues of $2.24 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.33% and down from $2.39 billion year-over-year [2] - Over the last four quarters, Graphic Packaging has surpassed consensus EPS estimates four times but has not beaten consensus revenue estimates [2] Stock Outlook - Graphic Packaging shares have increased approximately 13.6% since the beginning of the year, compared to the S&P 500's gain of 14.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $2.39 billion, and for the current fiscal year, it is $2.69 on revenues of $9.22 billion [7] - The estimate revisions trend for Graphic Packaging is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Containers - Paper and Packaging industry is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]