Graphic Packaging Holding Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

Graphic Packaging Holding (NYS: GPK) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Graphic Packaging Holding met expectations on revenues and missed estimates on earnings per share.

Compared with the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.


Gross margins expanded, operating margins dropped, net margins dropped.

Revenue details
Graphic Packaging Holding logged revenue of $1.07 billion. The seven analysts polled by S&P Capital IQ anticipated a top line of $1.07 billion on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $1.00 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.06. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS of $0.04 for Q1 were 50% lower than the prior-year quarter's $0.08 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.9%, 10 basis points better than the prior-year quarter. Operating margin was 6.9%, 10 basis points worse than the prior-year quarter. Net margin was 1.6%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $4.41 billion. The average EPS estimate is $0.35.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Graphic Packaging Holding is outperform, with an average price target of $6.20.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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.

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