Graphic Packaging Updates on Q3 Operations, Lowers '24 Outlook

Company Performance and Guidance - Graphic Packaging Holding Company (GPK) faced unexpected headwinds in Q3 2024, leading to a lowered full-year outlook [1] - Severe weather in July impacted production at two paperboard manufacturing sites, and an electrical substation issue in August caused further disruptions, resulting in an estimated $20-25 million impact on Q3 adjusted EBITDA [2] - GPK adjusted its 2024 guidance, expecting adjusted EBITDA below the midpoint of the previously announced range of$1,730-$1,830 million and adjusted earnings per share below the midpoint of$2.65-$2.85 [3] - In Q2, GPK reported earnings of 60 cents per share, beating the Zacks Consensus Estimate of 56 cents but down from 66 cents in the year-ago quarter [4] - Q2 revenues were$2.24 billion, missing the consensus estimate of $2.29 billion and down 6.5$2.39 billion in the year-ago quarter [4] Stock Performance - GPK shares gained 36.4% in the past year, outperforming the industry's 25% growth [5] - GPK currently holds a Zacks Rank 3 (Hold) [5] Industry Comparison - Better-ranked stocks in the Industrial Products sector include Crane Company (CR), Flowserve Corporation (FLS), and Cintas Corporation (CTAS), all with a Zacks Rank 2 (Buy) [6] - Crane Company (CR) has a Zacks Consensus Estimate of $5.07 per share for 2024, with a 6$2.76 per share for 2024, indicating 31.6% year-over-year growth, with a 4% upward revision in the past 60 days and a trailing four-quarter average earnings surprise of 18.2% [8] - Cintas Corporation (CTAS) has a Zacks Consensus Estimate of $16.64 per share for 2024, with a 1% upward revision in the past 60 days and a trailing four-quarter average earnings surprise of 4% [9]