Packaging Corporation of America (NYSE:PKG) Posts Earnings Results, Misses Expectations By $0.10 EPS

Key Points

• Packaging Corporation of America reported earnings of $2.73 per share for the quarter, falling short of analysts' expectations of $2.83, marking a miss of $0.10 EPS.
• The company announced a quarterly dividend of $1.25, translating to an annualized dividend of $5.00 and a yield of 2.4%.
• Despite the earnings miss, trading in the company's stock increased by 0.4%, with a current market capitalization of $18.79 billion.

Packaging Corporation of America (NYSE:PKG - Get Free Report) issued its quarterly earnings results on Wednesday. The industrial products company reported $2.73 earnings per share for the quarter, missing analysts' consensus estimates of $2.83 by ($0.10), Zacks reports. Packaging Corporation of America had a return on equity of 20.08% and a net margin of 10.47%. Packaging Corporation of America updated its Q4 2025 guidance to 2.400-2.400 EPS.

Packaging Corporation of America Stock Up 0.4%

Shares of Packaging Corporation of America stock traded up $0.75 during trading hours on Wednesday, reaching $208.88. The company's stock had a trading volume of 1,438,510 shares, compared to its average volume of 821,348. Packaging Corporation of America has a one year low of $172.71 and a one year high of $250.82. The company has a market capitalization of $18.79 billion, a P/E ratio of 20.85, a P/E/G ratio of 1.21 and a beta of 0.91. The stock's fifty day simple moving average is $211.04 and its two-hundred day simple moving average is $198.95. The company has a debt-to-equity ratio of 0.54, a quick ratio of 2.32 and a current ratio of 3.54.

Packaging Corporation of America Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th were paid a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Monday, September 15th. Packaging Corporation of America's dividend payout ratio (DPR) is 49.90%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on PKG. JPMorgan Chase & Co. began coverage on shares of Packaging Corporation of America in a report on Wednesday, September 24th. They set an "overweight" rating and a $242.00 price target for the company. Weiss Ratings reiterated a "buy (b-)" rating on shares of Packaging Corporation of America in a research report on Wednesday, October 8th. Citigroup increased their price objective on shares of Packaging Corporation of America from $214.00 to $218.00 and gave the company a "neutral" rating in a research note on Monday, October 6th. Wells Fargo & Company increased their price objective on shares of Packaging Corporation of America from $200.00 to $222.00 and gave the company an "equal weight" rating in a research note on Tuesday, October 7th. Finally, Truist Financial increased their price objective on shares of Packaging Corporation of America from $262.00 to $264.00 and gave the company a "buy" rating in a research note on Monday, October 13th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Packaging Corporation of America presently has a consensus rating of "Moderate Buy" and an average price target of $229.33.

Insider Buying and Selling at Packaging Corporation of America

In related news, CEO Mark W. Kowlzan sold 25,000 shares of the firm's stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $215.97, for a total transaction of $5,399,250.00. Following the transaction, the chief executive officer directly owned 437,378 shares of the company's stock, valued at $94,460,526.66. This trade represents a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Packaging Corporation of America

Several hedge funds have recently bought and sold shares of PKG. Integrated Wealth Concepts LLC grew its stake in Packaging Corporation of America by 73.5% during the first quarter. Integrated Wealth Concepts LLC now owns 2,956 shares of the industrial products company's stock valued at $585,000 after acquiring an additional 1,252 shares in the last quarter. Empowered Funds LLC lifted its position in Packaging Corporation of America by 538.6% during the first quarter. Empowered Funds LLC now owns 6,303 shares of the industrial products company's stock valued at $1,248,000 after purchasing an additional 5,316 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in Packaging Corporation of America by 40.4% during the first quarter. Geneos Wealth Management Inc. now owns 198 shares of the industrial products company's stock valued at $39,000 after purchasing an additional 57 shares during the last quarter. Sivia Capital Partners LLC lifted its position in Packaging Corporation of America by 43.6% during the second quarter. Sivia Capital Partners LLC now owns 1,770 shares of the industrial products company's stock valued at $334,000 after purchasing an additional 537 shares during the last quarter. Finally, Cresset Asset Management LLC lifted its position in Packaging Corporation of America by 17.0% during the second quarter. Cresset Asset Management LLC now owns 1,772 shares of the industrial products company's stock valued at $336,000 after purchasing an additional 258 shares during the last quarter. Hedge funds and other institutional investors own 89.78% of the company's stock.

Packaging Corporation of America Company Profile

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers.

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