Zacks Research Issues Pessimistic Estimate for PKG Earnings

Key Points

• Zacks Research has revised Packaging Corporation of America's Q1 2027 earnings estimate to $2.65 per share, down from a previous estimate of $2.71, reflecting a pessimistic outlook.
• Recently reported quarterly earnings showed $2.48 EPS, beating expectations, but revenue of $2.17 billion fell slightly short of the $2.18 billion forecast.
• Analysts have mixed ratings on the stock, with a consensus of "Moderate Buy" and an average target price of $223.83.

Packaging Corporation of America (NYSE:PKG - Free Report) - Zacks Research dropped their Q1 2027 earnings estimates for shares of Packaging Corporation of America in a report released on Thursday, September 25th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $2.65 per share for the quarter, down from their previous estimate of $2.71. The consensus estimate for Packaging Corporation of America's current full-year earnings is $10.44 per share. Zacks Research also issued estimates for Packaging Corporation of America's Q2 2027 earnings at $2.71 EPS and FY2027 earnings at $11.03 EPS.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The industrial products company reported $2.48 earnings per share for the quarter, beating the consensus estimate of $2.44 by $0.04. The firm had revenue of $2.17 billion for the quarter, compared to analysts' expectations of $2.18 billion. Packaging Corporation of America had a net margin of 10.47% and a return on equity of 20.08%. The business's revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm earned $2.20 EPS. Packaging Corporation of America has set its Q3 2025 guidance at 2.800-2.800 EPS.

Several other research firms have also recently weighed in on PKG. UBS Group lifted their price target on Packaging Corporation of America from $210.00 to $220.00 and gave the stock a "neutral" rating in a report on Tuesday, July 29th. Citigroup lifted their target price on Packaging Corporation of America from $197.00 to $214.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. Jefferies Financial Group downgraded shares of Packaging Corporation of America from a "buy" rating to a "hold" rating and decreased their price target for the company from $245.00 to $205.00 in a research note on Monday, June 16th. Truist Financial raised their price target on shares of Packaging Corporation of America from $238.00 to $262.00 and gave the stock a "buy" rating in a research report on Wednesday, September 17th. Finally, Wells Fargo & Company boosted their price objective on shares of Packaging Corporation of America from $180.00 to $200.00 and gave the company an "equal weight" rating in a report on Thursday, July 10th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $223.83.

Packaging Corporation of America Price Performance

Packaging Corporation of America stock opened at $213.18 on Friday. The company has a market capitalization of $19.18 billion, a price-to-earnings ratio of 21.28, a PEG ratio of 1.88 and a beta of 0.87. The company has a current ratio of 3.54, a quick ratio of 2.32 and a debt-to-equity ratio of 0.54. Packaging Corporation of America has a 12 month low of $172.71 and a 12 month high of $250.82. The stock's 50 day moving average is $206.65 and its 200-day moving average is $197.10.

Packaging Corporation of America Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Monday, September 15th will be paid a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Monday, September 15th. Packaging Corporation of America's dividend payout ratio (DPR) is 49.90%.

Insider Buying and Selling

In other Packaging Corporation of America news, CEO Mark W. Kowlzan sold 25,000 shares of the company's stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $215.97, for a total transaction of $5,399,250.00. Following the completion of the sale, the chief executive officer directly owned 437,378 shares in the company, valued at $94,460,526.66. This 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 the SEC website. 1.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Packaging Corporation of America

Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in Packaging Corporation of America by 1.6% in the second quarter. Vanguard Group Inc. now owns 11,204,307 shares of the industrial products company's stock valued at $2,111,452,000 after buying an additional 176,811 shares in the last quarter. State Street Corp lifted its holdings in shares of Packaging Corporation of America by 1.1% in the second quarter. State Street Corp now owns 4,097,253 shares of the industrial products company's stock worth $777,037,000 after acquiring an additional 43,141 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Packaging Corporation of America by 2.4% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 3,351,323 shares of the industrial products company's stock valued at $631,557,000 after purchasing an additional 78,619 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Packaging Corporation of America by 46.5% during the 1st quarter. JPMorgan Chase & Co. now owns 3,038,859 shares of the industrial products company's stock valued at $601,755,000 after purchasing an additional 964,085 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its holdings in shares of Packaging Corporation of America by 108.4% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 2,363,617 shares of the industrial products company's stock valued at $468,045,000 after purchasing an additional 1,229,219 shares during the last quarter. Institutional investors and hedge funds 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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