Graphic Packaging (NYSE:GPK) Releases FY 2025 Earnings Guidance

Key Points

• Graphic Packaging has issued FY 2025 earnings guidance, predicting EPS between 1.900-2.20 and revenue of $8.4 billion-$8.6 billion.
• Analyst ratings for the stock vary, with six analysts giving a hold rating and four issuing a buy rating; recent price targets range from $23.00 to $28.00.
• The company has announced a $1.50 billion share buyback program, indicating confidence in its stock value amidst a 0.9% drop in share price.

Graphic Packaging (NYSE:GPK - Get Free Report) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 1.900-2.20 for the period, compared to the consensus estimate of 2.083. The company issued revenue guidance of $8.4 billion-$8.6 billion, compared to the consensus revenue estimate of $8.5 billion.

Graphic Packaging Stock Performance

Shares of NYSE GPK traded up $0.05 during trading on Wednesday, hitting $22.51. The company had a trading volume of 4,442,162 shares, compared to its average volume of 3,063,604. The stock has a 50 day simple moving average of $22.12 and a 200 day simple moving average of $24.47. The firm has a market capitalization of $6.79 billion, a P/E ratio of 12.72 and a beta of 0.71. Graphic Packaging has a 12 month low of $20.86 and a 12 month high of $30.70. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.73 and a current ratio of 1.43.

Graphic Packaging (NYSE:GPK - Get Free Report) last issued its earnings results on Tuesday, July 29th. The industrial products company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.02. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.13 billion. Graphic Packaging had a return on equity of 21.13% and a net margin of 6.18%. As a group, analysts anticipate that Graphic Packaging will post 2.47 earnings per share for the current year.

Graphic Packaging Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Saturday, July 5th. Investors of record on Sunday, June 15th were paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 1.95%. The ex-dividend date was Friday, June 13th. Graphic Packaging's dividend payout ratio (DPR) is presently 24.86%.

Graphic Packaging declared that its board has authorized a stock repurchase plan on Thursday, May 1st that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the industrial products company to buy up to 23.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

GPK has been the subject of a number of recent research reports. BNP Paribas Exane cut Graphic Packaging from an "outperform" rating to a "neutral" rating in a report on Wednesday, June 25th. Bank of America lowered their target price on Graphic Packaging from $31.00 to $28.00 and set a "buy" rating for the company in a report on Wednesday, July 9th. Truist Financial lowered their target price on Graphic Packaging from $24.00 to $23.00 and set a "hold" rating for the company in a report on Friday, July 11th. Wells Fargo & Company upped their price objective on Graphic Packaging from $21.00 to $23.00 and gave the stock an "equal weight" rating in a research note on Friday, July 18th. Finally, Royal Bank Of Canada decreased their price target on Graphic Packaging from $26.00 to $25.00 and set an "outperform" rating for the company in a research note on Wednesday, June 18th. Six analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $26.38.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Graphic Packaging stock. AQR Capital Management LLC increased its stake in shares of Graphic Packaging Holding Company (NYSE:GPK - Free Report) by 36.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 171,608 shares of the industrial products company's stock after acquiring an additional 45,944 shares during the period. AQR Capital Management LLC owned about 0.06% of Graphic Packaging worth $4,453,000 as of its most recent filing with the Securities & Exchange Commission. 99.67% of the stock is currently owned by institutional investors and hedge funds.

Graphic Packaging Company Profile

Graphic Packaging Holding Company, together with its subsidiaries, designs, produces, and sells consumer packaging products to brands in food, beverage, foodservice, household, and other consumer products. It operates through three segments: Paperboard Manufacturing, Americas Paperboard Packaging, and Europe Paperboard Packaging.