Packaging Corp. of America Beats Analyst Estimates on EPS
Packaging Corp. of America (NYS: PKG) reported earnings on Jan. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Packaging Corp. of America beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and earnings per share dropped significantly.
Margins dropped across the board.
Packaging Corp. of America booked revenue of $654 million. The nine analysts polled by S&P Capital IQ expected net sales of $641 million. Sales were 4.4% higher than the prior-year quarter's $627 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.40. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.37 per share. GAAP EPS of $0.40 for Q4 were 26% lower than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 20.5%, 300 basis points worse than the prior-year quarter. Operating margin was 10.4%, 620 basis points worse than the prior-year quarter. Net margin was 6.0%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $641 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $2.6 billion. The average EPS estimate is $1.87.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 167 members out of 179 rating the stock outperform, and 12 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Packaging Corp. of America a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Packaging Corp. of America is outperform, with an average price target of $30.46.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Packaging Corp. of America. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Packaging Corp. of America to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.