Zacks Research Has Bearish Estimate for PKG Q3 Earnings

Key Points

• Zacks Research cut its Q3 2027 EPS estimate for Packaging Corporation of America to $3.41 from $3.45, signaling a slightly more bearish outlook on the company’s near-term earnings.
• The company’s most recent quarter beat profit expectations, with EPS of $2.40 versus the $2.17 consensus, though revenue of $2.37 billion came in below estimates.
• Packaging Corporation of America also raised its quarterly dividend to $1.50 per share, or $6.00 annualized, for a yield of about 2.7%.

Packaging Corporation of America (NYSE:PKG - Free Report) - Equities researchers at Zacks Research dropped their Q3 2027 earnings estimates for shares of Packaging Corporation of America in a note issued to investors on Friday, May 22nd. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $3.41 for the quarter, down from their previous estimate of $3.45. The consensus estimate for Packaging Corporation of America's current full-year earnings is $10.81 per share. Zacks Research also issued estimates for Packaging Corporation of America's Q4 2027 earnings at $3.21 EPS and FY2028 earnings at $14.08 EPS.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last released its earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.17 by $0.23. The business had revenue of $2.37 billion for the quarter, compared to analyst estimates of $2.45 billion. Packaging Corporation of America had a return on equity of 19.27% and a net margin of 8.04%.The company's revenue for the quarter was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.31 earnings per share. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS.

A number of other research firms also recently commented on PKG. Truist Financial reissued a "buy" rating and issued a $258.00 target price (down from $260.00) on shares of Packaging Corporation of America in a report on Monday, April 27th. JPMorgan Chase & Co. increased their price objective on shares of Packaging Corporation of America from $225.00 to $246.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. UBS Group raised shares of Packaging Corporation of America from a "neutral" rating to a "buy" rating and increased their price objective for the company from $232.00 to $248.00 in a research note on Wednesday, May 20th. Argus raised Packaging Corporation of America to a "strong-buy" rating in a research report on Thursday, February 26th. Finally, Wells Fargo & Company dropped their price target on Packaging Corporation of America from $234.00 to $226.00 and set an "overweight" rating for the company in a research report on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $236.57.

Packaging Corporation of America Trading Up 1.2%

NYSE PKG opened at $218.47 on Wednesday. The company has a quick ratio of 1.88, a current ratio of 3.07 and a debt-to-equity ratio of 0.87. The stock has a market capitalization of $19.47 billion, a P/E ratio of 26.58, a P/E/G ratio of 1.95 and a beta of 0.81. Packaging Corporation of America has a 52-week low of $184.76 and a 52-week high of $249.51. The firm has a 50-day moving average price of $212.74 and a 200 day moving average price of $214.36.

Packaging Corporation of America Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th will be issued a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Monday, June 15th. This is an increase from Packaging Corporation of America's previous quarterly dividend of $1.25. Packaging Corporation of America's dividend payout ratio (DPR) is presently 72.99%.

Institutional Trading of Packaging Corporation of America

Large investors have recently added to or reduced their stakes in the stock. Cornerstone Planning Group LLC increased its holdings in Packaging Corporation of America by 105.4% in the 3rd quarter. Cornerstone Planning Group LLC now owns 115 shares of the industrial products company's stock valued at $25,000 after purchasing an additional 59 shares in the last quarter. DV Equities LLC purchased a new stake in Packaging Corporation of America during the 4th quarter worth approximately $26,000. KERR FINANCIAL PLANNING Corp purchased a new stake in Packaging Corporation of America during the 3rd quarter worth approximately $31,000. Covestor Ltd increased its holdings in Packaging Corporation of America by 140.0% during the 4th quarter. Covestor Ltd now owns 156 shares of the industrial products company's stock worth $32,000 after purchasing an additional 91 shares during the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in Packaging Corporation of America by 94.1% during the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 165 shares of the industrial products company's stock worth $34,000 after purchasing an additional 80 shares during the last quarter. 89.78% of the stock is currently owned by institutional investors and hedge funds.

About Packaging Corporation of America

Packaging Corporation of America NYSE: PKG is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.

Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.

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