Packaging Corp Gears Up to Report Q4 Earnings: What to Expect?

Core Viewpoint - Packaging Corporation (PKG) is expected to report its fourth-quarter 2024 results on January 29, with revenue and earnings estimates indicating growth compared to the previous year [1][2]. Financial Estimates - The Zacks Consensus Estimate for PKG's fourth-quarter revenues is $2.01 billion, reflecting a 3.1$2.51 per share, which represents a year-over-year growth of 17.8% and has increased by 0.4% over the past 60 days [2][3]. Earnings Surprise History - PKG has a history of beating Zacks Consensus Estimates, with an average surprise of 8.6% over the last four quarters [3]. Earnings Prediction Model - The current model does not predict an earnings beat for PKG, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [4][5]. Segment Performance Insights - The Packaging segment is expected to experience lower prices due to a decrease in benchmark index grades, with a negative price/mix impact of 4.3% anticipated for the quarter [6]. - Despite this, demand in the Packaging segment is projected to remain strong, with a year-over-year volume increase of 13.4% [7]. - The estimated quarterly revenues for the Packaging segment are $1.94 billion, indicating a 9.1$459 million, reflecting a 19.4% increase [8]. Paper Segment Performance - The Paper segment is expected to have flat prices and a volume increase of 3.2% year over year, with a negative pricing/mix impact of 1.9% for the fourth quarter [8]. - The estimated revenues for the Paper segment are $145.7 million, suggesting a 5.7$44 million, indicating a 26.1% rise [9]. Stock Performance - Over the past year, PKG shares have increased by 55%, significantly outperforming the industry average growth of 20.1% [10].