PCA(US:PKG) ZACKSยท2025-04-23 15:15Core Insights - Packaging Corporation of America (PKG) reported adjusted earnings per share (EPS) of $2.31 for Q1 2025, exceeding the Zacks Consensus Estimate of $2.21 and reflecting a 34% year-over-year increase [1] - The company's sales rose 8.2% year over year to $2.141 billion, surpassing the Zacks Consensus Estimate of $2.140 billion [2] - The gross profit increased by 22.8% year over year to $455 million, with a gross margin of 21.2%, up from 18.7% in the prior year [2] Financial Performance - The cost of products sold increased by 4.8% year over year to $1.69 billion [2] - Selling, general and administrative expenses were $161 million, compared to $152 million in the prior year [3] - Adjusted operating income grew 38.7% year over year to $286 million [3] Segment Performance - In the Packaging segment, sales increased by 9.6% year over year to $1.97 billion, with total corrugated product shipments per day rising 2.5% [4] - The Paper segment's sales were $154 million, down 5.9% year over year, with a sales volume decline of 7% [6] - Adjusted operating profit for the Paper segment was $35.6 million, slightly down from $36.1 million in the prior year [6] Cash Flow and Outlook - The cash balance at the end of Q1 was $0.91 billion, down from $1.25 billion at the end of the prior year [7] - For Q2 2025, the company projects an EPS of $2.41, expecting improvements in domestic prices and box shipments, although operating costs may rise due to lower containerboard volume [8][9] Stock Performance - Over the past year, PKG shares have gained 9.8%, outperforming the industry growth of 0.8% [10]