PKG

A month has gone by since the last earnings report for Packaging Corp. (PKG). Shares have lost about 0.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Packaging Corp. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Packaging Corporation posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The result beat the Zacks Consensus Estimate of $2.17 by 10.6%. Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported adjusted results, though special items weighed on reported profitability. Lower-than-expected earnings from the recently acquired Greif business also impacted sales. The Grief operations generated a loss of 6 cents per share during the quarter. PKG’s Packaging segment remained the primary growth engine. Segment sales increased 11.1% year over year to $2.19 billion in the quarter, reflecting stronger top-line momentum relative to the consolidated growth rate. Adjusted operating profit for the segment was $316.5 million compared with $284 million in the prior-year quarter. The Paper segment delivered more modest expansion, with sales of $159.9 million compared with $154.2 million a year ago. Adjusted operating profit for the segment was $33 million compared with $36 million in the prior year quarter. Despite the double-digit sales increase, profitability metrics showed mixed movement on a reported basis. Gross profit was $453 million compared with $455 million in the prior-year quarter, while cost of sales climbed to $1.91 billion year-over-year from $1.69 billion. The gross margin came in at 19.1% in the first quarter of 2026 compared with 21.2% in the prior year quarter. Below the gross line, selling, general and administrative expenses rose to $180.3 million from $161.4 million, while other expenses, net, increased to $21.3 million from $13.0 million. A key swing factor between reported and adjusted performance was special items recorded during the quarter. Special items totaled $44.3 million after tax.The largest item was $53.3 million of ch...

Ball Corporation BALL posted first-quarter 2026 comparable earnings of 94 cents per share, up 22.1% year over year and above the Zacks Consensus Estimate of 85 cents by 10.6%. Higher volumes in North and Central America and EMEA, and favorable price/mix across the beverage can footprint helped offset higher costs. On a reported basis, the company’s earnings per share (EPS) from continuing operations were 77 cents compared with the prior-year quarter’s 64 cents. Revenues rose 16.3% from the year-ago quarter to $3.60 billion, topping the consensus mark of $3.27 billion by 10.1%. Global aluminum packaging shipments inched up 0.8% year over year. Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote Cost of sales (excluding depreciation and amortization) increased 18.6% to $2.96 billion. The gross profit totaled $646 million, up 7% from the year-ago quarter. The gross margin was 17.9%, a contraction from the prior-year quarter’s 19.5%. Selling, general and administrative expense was $150 million, a 0.7% increase year over year. Comparable segment operating earnings were $387 million, 10% higher than the prior-year quarter’s $352 million. Segment operating margin was 10.7% compared with 11.4% in the year-ago quarter. The Beverage Packaging North and Central America segment’s revenues increased 21.4% year over year on higher volume and price/mix, mainly due to higher aluminum prices. We had projected sales of $1.51 billion. Operating earnings amounted to $205 million, up 2.5% year over year. Higher volume and favorable price/mix helped offset the impact of higher costs. Our estimate for the segment's operating earnings was $187 million. Sales in the Beverage Packaging EMEA segment were $1.11 billion, up 16% year over year. The reported figure beat our estimate of $983 million. The upside was attributed to stronger shipments and currency translation, and contributions from the acquired Benepack business. Operating earnings were $134 million, marking 20.7% year-over-year growth. The figure came in higher than our projected figure of $90.9 million. The Beverage Packaging South America segment’s revenues rose 7.5% year over year to $585 million, driven by higher prices, primarily attributable to higher aluminum prices, partially offset by lower volume. Our projection for the segment’s sales was $580.6 million. Operating earnings were $67 million...

Amcor plc AMCR has delivered third-quarter fiscal 2026 adjusted earnings of 96 cents per share, up 6% year over year and in line with the Zacks Consensus Estimate. Reported net sales climbed 77% from the year-ago quarter to $5.91 billion and beat the consensus mark of $5.69 billion. Results reflected the first full year of the Berry combination and continued integration progress, including $77 million of acquisition synergies in the quarter, along with cost and productivity actions that supported profitability. Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote Profitability advanced meaningfully in the quarter as adjusted EBITDA rose to $892 million from $477 million in the prior-year quarter, translating to a 15.1% margin, up from 14.3% a year ago. Adjusted EBIT increased to $687 million from the prior-year quarter’s $384 million, with the adjusted EBIT margin increasing to 11.6%, highlighting better mix and execution across the combined platform. The top line was primarily shaped by acquisition-driven expansion. On a constant-currency basis, net sales grew 70% year over year, including $2.4 billion of acquired sales net of divestments, while raw material pass-through had no material impact on consolidated revenues. Underlying demand remained pressured. Amcor estimated that volumes were 1.5% lower than estimated combined volumes for the legacy Amcor and legacy Berry businesses in the prior-year quarter (excluding non-core and divested businesses). Price/mix was described as having no material impact on net sales. Global Flexible Packaging Solutions posted net sales of $3.25 billion, up 35% on a reported basis and 29% in constant currency. Our sales projection for the Global Flexible Packaging Solutions segment was $3.4 billion. Adjusted EBIT increased to $452 million from the prior-year quarter’s $343 million, lifting segment profitability. The company cited higher volumes in pet food and protein, offset by softer demand in healthcare and other nutrition. Regional trends were also mixed, with volumes lower across North America and Europe and higher across Asia. The segment’s profit improvement reflected integration benefits, productivity and cost performance, partly offset by the volume backdrop. Global Rigid Packaging Solutions generated net sales of $2.66 billion, up 187% year over year on a reported basis and 174% in constant currency, again...

Shares of AptarGroup, Inc. ATR have dipped 1% since posting first-quarter 2026 adjusted earnings of $1.19 per share on Thursday. Adjusted earnings declined 8% from $1.30 a year ago on a less favorable mix and pharma-related headwinds. However, the bottom line topped the Zacks Consensus Estimate of $1.15. Quarterly sales rose 10.8% year over year to $983 million and beat the consensus mark of $964 million by 2%. AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote Pharma segment sales increased 7.1% year over year to $439 million. The reported figure missed our estimate of $454 million. The reported gain was aided by currency and a small acquisition contribution, while core sales slipped 1% on tougher comparisons in the prescription business. Within Pharma, prescription core sales declined 10% as dispensing systems tied to emergency medicine were pressured by destocking. Offsetting this, consumer healthcare core sales increased 4% on nasal decongestant and eye-care solutions, while injectables delivered 20% core growth. The Pharma segment posted adjusted EBITDA of $146 million compared with the prior-year quarter’s $142 million. We predicted adjusted EBITDA of $140 million for the segment. The Beauty segment’s sales advanced 19% year over year to $364 million. The reported figure beat our estimate of $324 million. Core sales grew 3% as demand improved across fragrance dispensing and select personal care applications, with acquisitions and currency providing additional lift. Profitability in Beauty was softer despite sales growth. Adjusted EBITDA came in at $40 million compared with the prior-year quarter’s $37 million. We predicted adjusted EBITDA of $34.5 million for the segment. The Closures segment’s sales increased 5% to $181 million. The reported figure beat our estimate of $177 million. While product volumes improved, core sales were flat because results were weighed down by the pass-through of lower resin pricing. Margins were notably weaker in the segment. Adjusted EBITDA fell to $23.6 million compared with the prior-year quarter’s $27 million, driven by maintenance issues and temporary plant closures tied to extreme weather in North America, as well as certain investment write-offs. We predicted the segment’s adjusted EBITDA to be $28 million. On a reported basis, diluted earnings per share were $1.12 compared with $1.17 in th...

Amcor Plc AMCR is scheduled to report third-quarter fiscal 2026 results on May 6, before the opening bell. The Zacks Consensus Estimate for AMCR’s fiscal third-quarter revenues is pegged at $5.70 billion, indicating a 70.9% surge from the year-ago reported figure. The consensus estimate for earnings is pegged at 96 cents per share. The consensus estimate indicates growth of 6.7% from the year-ago quarter's actual. The estimate has moved down 3% in the past 60 days. Image Source: Zacks Investment Research Amcor’s earnings met the Zacks Consensus Estimate in two of the trailing four quarters, beat in one and missed in one, the average negative surprise being 0.29%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for Amcor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter. AMCR’s Earnings ESP: The Earnings ESP for Amcor is -0.95%. Amcor’s Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Amcor’s total volume had been bearing the brunt of weak consumer demand across its key markets due to the inflationary environment. Customers have also been lowering their inventory, which has impacted demand. Nonetheless, Amcor is expected to have gained from the rise in e-commerce activities worldwide. We expect 3.7% growth in volumes in the fiscal third quarter. Overall price/mix benefits are expected to be a positive 1.6% for the quarter and currency impacts are likely to have added another 3.5%. Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials because of market dynamics and higher rates of inflation impacting other costs. The impacts of this are expected to be reflected in the company’s fiscal third-quarter earnings results. We expect volume for the Global Flexible Packaging Solutions segment’s fiscal third quarter to be 3.6%. The price/mix is expected to be 1.7% and 3%, respectively. Our sales projection for the Global Flexible Packaging Solutions segment is pegged at $3.4 billion, indicating 30.5% year-over-year growth. Our model estimates a 4% jump in volumes f...

Smurfit Westrock Plc SW has posted adjusted earnings of 33 cents per share for the first quarter of 2026, down 51.5% from the year-ago period. The figure missed the Zacks Consensus Estimate of 36 cents. Net revenues of $7.71 billion inched up 0.7% year over year but missed the consensus estimate of $7.76 billion. Smurfit Westrock PLC price-consensus-eps-surprise-chart | Smurfit Westrock PLC Quote Smurfit Westrock reported operating profit of $253 million, down 54.2% year over year. The company’s cost of sales [SM1.1]increased 6% to $6.4 billion from the year-ago period. The gross profit fell 19.6% year over year to $1.3 billion. Adjusted EBITDA declined to $1.08 billion from $1.25 billion a year ago, and the adjusted EBITDA margin contracted to 14% from 16.4%. Adverse weather events were a meaningful drag on quarterly net income and adjusted EBITDA, centered in the North American business. In North America, net revenues totaled $4.5 billion, down 3.6% year over year. While adjusted EBITDA was down 23.9% year over year to $597 million. Corrugated volumes were down 7.4% on a days-adjusted basis, underscoring the near-term pressure on the region that remains the company’s largest value creation opportunity. Europe, MEA & APAC segment delivered net revenues of $2.8 billion, which marked an increase from $2.6 billion in the year-ago quarter. The segment’s adjusted EBITDA came in at $421 million, up 8.2% year over year. Corrugated volumes increased 0.3% on a days-adjusted basis, supported by solid order books in converting operations and increased demand for containerboard, alongside implemented containerboard price increases across Europe. Net revenues of the LATAM segment were $0.5 billion, marking a year-over-year increase of 5.3%, aided by good volume growth in key markets. The adjusted EBITDA came in at $106 million compared with $115 million in the first quarter of 2025. The company also highlighted an acquisition in Ecuador that expands geographic reach and strengthens global paper integration. Cash and cash equivalents ended the quarter at $674 million, down from $892 million at the start of the period. Net cash provided by operating activities was $204 million in the quarter compared with the prior-year quarter’s $235 million. The company previously announced a quarterly dividend of 45.23 cents per share. For the second quarter of 2026, SW expects adjuste...

International Paper Company IP posted adjusted operating earnings of 15 cents per share for the first quarter of 2026, missing the Zacks Consensus Estimate of 18 cents by 16.7%. The figure declined 11.8% from 17 cents a year ago. Including one-time items, the company reported earnings of 14 cents per share against a loss of 28 cents in the year-ago quarter. Net sales were $5.97 billion, up 13.4% year over year, but below the consensus mark of $6.05 billion by 1.2%. International Paper Company price-consensus-eps-surprise-chart | International Paper Company Quote Cost of products sold increased 11.5% year over year to $4.24 billion in the quarter. Gross profit rose 18% year over year to $1.73 billion. The gross margin came in at 28.9% compared with the year-ago quarter’s 27.7%. Selling and administrative costs were $510 million, which increased 4.7% from $487 million in the prior-year quarter. The adjusted operating income in the quarter was $188 million, 11% higher than $169 million in the first quarter of 2025. Adjusted operating margin contracted to 3.1% from 3.2% in the year-ago quarter. Packaging Solutions North America: The segment’s sales were $3.63 billion, down 2.1% from the prior-year figure. Our projection for the segment’s sales was $3.61 billion. The segment reported an operating profit of $248 million compared with an operating profit of $142 million in the prior-year quarter. Our projection for the segment was $304 million. The segment witnessed a sequential increase in the cost of products sold due to higher operating costs affected by winter storm impacts. Input costs rose due to higher natural gas costs and utility costs driven by the winter storm. Profitability, however, improved on a year-over-year basis. Packaging Solutions EMEA: The segment’s sales were $2.32 billion, up from the last-year figure of $1.55 billion. Our expectation for the segment’s sales was $2.39 billion. The segment reported an operating loss of $51 million against the prior-year quarter’s operating profit of $46 million. Our projection for the segment was a loss of $46 million. The segment’s results were impacted by higher energy costs. The company had earlier announced plans to separate its PS North America and PS EMEA operations into two independent, publicly traded companies. The transaction is intended to create two scaled regional leaders in packaging solutions, e...

Avery Dennison Corporation AVY has posted adjusted earnings of $2.47 per share for the first quarter of 2026, rising 7.4% from the year-ago period and beating the Zacks Consensus Estimate of $2.41. Revenues came in at $2.298 billion, growing 7% year over year and surpassing the consensus mark of $2.271 billion by 1.2%. The quarter featured modest organic growth and steady profitability. The company gained from volume-led performance and continued cost management. Sales advanced 2.3% excluding currency, as a 4.7% foreign-currency headwind weighed on reported growth. Organic sales increased 1.1%, while acquisitions were a 1.2% drag on the quarter’s growth bridge. Our model expected organic sales to inch up 0.2%, and acquisitions to have a positive impact of 1%. Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote Gross profit was $664.8 million, up from $621.5 million a year ago, with the gross margin essentially steady at 28.9%. Operating income was $271.9 million, marking a year-over-year increase of 6.8%. The operating margin came in at 11.8% for the quarter compared with the prior-year quarter’s 11.9%. Adjusted EBITDA was $376.5 million, which marked a year-over-year increase of 6.8%. The adjusted EBITDA margin came in at 16.4%, flat with the first quarter of 2025. Materials Group delivered reported sales of $1.65 billion, up 11.4% year over year. Sales rose 3.6% excluding currency and 1.9% organically. We estimated revenues of $1.56 billion for this segment. Mid-single-digit volume/mix growth was partly offset by deflation-related price reductions. The segment’s adjusted operating profit increased 10.4% year over year to $254 million. Our estimate was $237 million. Solutions Group sales were $649.2 million, down 2.8% year over year, with sales down 0.9% excluding currency and 0.9% organically. We estimated sales of $701 million for this segment. The company noted growth in higher-value categories, including Embelex and Vestcom, while Intelligent Labels and base categories were softer. The segment’s adjusted operating income dipped 14.2% year over year at $58.5 million. Our estimate was $65 million. AVY generated an adjusted free cash flow of $104.4 million in the quarter, a sharp improvement from a negative $53.1 million in the year-ago period. Capital returns remained active. The company returned $133 million t...

Packaging Corporation of America PKG posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The result beat the Zacks Consensus Estimate of $2.17 by 10.6%. Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported adjusted results, though special items weighed on reported profitability. Lower-than-expected earnings from the recently acquired Greif Inc.GEF business also impacted sales. The Grief operations generated a loss of 6 cents per share during the quarter. Packaging Corporation of America price-consensus-eps-surprise-chart | Packaging Corporation of America Quote PKG’s Packaging segment remained the primary growth engine. Segment sales increased 11.1% year over year to $2.19 billion in the quarter, reflecting stronger top-line momentum relative to the consolidated growth rate. Our model predicted the segment’s sales to be $2.21 billion for the quarter. Adjusted operating profit for the segment was $316.5 million compared with $284 million in the prior-year quarter. The Paper segment delivered more modest expansion, with sales of $159.9 million compared with $154.2 million a year ago. We expected sales of $151 million for the Paper segment. Adjusted operating profit for the segment was $33 million compared with $36 million in the prior year quarter. Despite the double-digit sales increase, profitability metrics showed mixed movement on a reported basis. Gross profit was $453 million compared with $455 million in the prior-year quarter, while cost of sales climbed to $1.91 billion year-over-year from $1.69 billion. The gross margin came in at 19.1% in the first quarter of 2026 compared with 21.2% in the prior year quarter. Below the gross line, selling, general and administrative expenses rose to $180.3 million from $161.4 million, while other expenses, net, increased to $21.3 million from $13.0 million. A key swing factor between reported and adjusted performance was special items recorded during the quarter. Special items totaled $44.3 million after tax. The largest item was $53.3 million of charges tied to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, WA, containerboard mill. PKG recorded $3.4 million of acquisition and integration-relat...

Packaging Corporation of America (NYSE:PKG) fell short of the market’s revenue expectations in Q1 CY2026, but sales rose 10.6% year on year to $2.37 billion. Its GAAP profit of $1.91 per share was 9.4% below analysts’ consensus estimates. Is now the time to buy PKG? Find out in our full research report (it’s free). Revenue: $2.37 billion vs analyst estimates of $2.42 billion (10.6% year-on-year growth, 2% miss) EPS (GAAP): $1.91 vs analyst expectations of $2.11 (9.4% miss) Adjusted EBITDA: $485.5 million vs analyst estimates of $468.6 million (20.5% margin, 3.6% beat) EPS (GAAP) guidance for Q2 CY2026 is $2.33 at the midpoint, missing analyst estimates by 4.6% Operating Margin: 10.7%, down from 13.1% in the same quarter last year Sales Volumes rose 11.8% year on year (7.6% in the same quarter last year) Market Capitalization: $18.15 billion Packaging Corporation of America’s first quarter results were met with a positive market reaction, despite revenue and profit missing Wall Street’s expectations. Management attributed the quarter’s performance to robust sales volume growth and operational execution, particularly in the legacy packaging segment. CEO Mark Kowlzan noted, “Our corrugated operations turned in a very strong quarter in all areas,” and highlighted higher prices and improved product mix as key drivers. The company also benefited from lower fiber costs and improved productivity across its mills, even as it contended with higher freight expenses and the ongoing integration of the Greif acquisition. Looking forward, Packaging Corporation of America’s guidance reflects expectations for continued demand strength and incremental benefits from price increases set to be implemented later in the year. Management pointed to ongoing integration efforts with the Greif assets, anticipated productivity gains, and a tight containerboard market as pivotal factors for upcoming quarters. CFO Kent Pflederer cautioned that higher maintenance and input costs will persist in the near term, and price realization will only gradually materialize, stating, “We expect some benefit during Q2 with the majority coming during Q3.” The company remains focused on optimizing its mill network and managing cost pressures as it moves through 2026. Management cited strong growth in shipments and operational improvements as primary contributors to first quarter performance, while also...

This article first appeared on GuruFocus. Net Income: $171 million or $1.91 per share; excluding special items, $215 million or $2.40 per share. Net Sales: $2.4 billion in Q1 2026, up from $2.1 billion in Q1 2025. EBITDA (Excluding Special Items): $486 million in Q1 2026, compared to $421 million in Q1 2025. Packaging Business EBITDA Margin: 22% in Q1 2026, up from 20.8% in Q1 2025. Containerboard Production: 1,398,000 tons in Q1 2026. Free Cash Flow: $164 million after $165 million of CapEx. Share Repurchases: 266,000 shares at an average price of $220.78. Effective Tax Rate (Excluding Special Items): Just under 23% for Q1 2026. Paper Segment EBITDA Margin: 23.6% in Q1 2026, compared to 26.1% in Q1 2025. Expected Q2 2026 Earnings: $2.33 per share, excluding special items. Warning! GuruFocus has detected 3 Warning Signs with PKG. Is PKG fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Packaging Corp of America (NYSE:PKG) reported an increase in first quarter net income to $215 million or $2.40 per share, excluding special items, compared to $208 million or $2.31 per share in the first quarter of 2025. First quarter net sales increased to $2.4 billion in 2026 from $2.1 billion in 2025, indicating strong revenue growth. The company achieved a higher EBITDA margin of 22% in the Packaging business, up from 20.8% in the previous year, reflecting improved operational efficiency. Operational performance was exceptional, with the Jackson mill setting new production and speed records, and the successful completion of the Wallula mill reconfiguration reducing costs. The company is implementing price increases in both the Packaging and Paper segments, which are expected to benefit earnings in the upcoming quarters. Higher freight costs negatively impacted earnings by $0.13 per share, reflecting increased transportation expenses. The acquired Greif operations generated a loss of $0.06 per share during the first quarter, primarily due to lower volume and higher costs. The company faced higher depreciation expenses in the legacy packaging business, impacting profitability. There were higher labor and operating costs in the Paper segment, which contributed to increased expenses. The company anticipates higher cash payments for taxes...

Q1 adjusted results: PCA reported first-quarter net income excluding special items of $215 million, or $2.40 per share, with net sales of $2.4 billion and EBITDA ex-items of $486 million, and guided Q2 EPS ex-items to $2.33. Special items and Greif impact: Special charges of $0.49 per share (primarily Wallula mill restructuring and Greif integration/closure costs) lowered reported EPS, and acquired Greif operations generated a $0.06 per-share loss this quarter. Operations and pricing outlook: PCA ran at full capacity with Packaging margins improving to ~22% and 1.398 million tons of containerboard produced, citing a tighter linerboard market and expecting most containerboard price benefits to flow through by Q3 while targeting ~$30 million annual synergy run rate from Greif integration. Interested in Packaging Corporation of America? Here are five stocks we like better. 3 Dividend Leaders Set for Strong Growth in 2025 Packaging Corporation of America (NYSE:PKG) reported first-quarter 2026 net income of $171 million, or $1.91 per share, with results affected by special items tied primarily to mill restructuring and acquisition integration. Excluding special items, the company posted net income of $215 million, or $2.40 per share, up from $208 million, or $2.31 per share, in the first quarter of 2025, Chairman and CEO Mark Kowlzan said on the company’s earnings call. Net sales increased to $2.4 billion from $2.1 billion a year earlier. Total company EBITDA excluding special items rose to $486 million from $421 million in the prior-year quarter, Kowlzan said. → GE Vernova Beats Earnings by 790% as Data Center Demand Explodes Packaging Corporation of America: Buy The Dip Kowlzan said first-quarter results included special items expense of $0.49 per share, “primarily for the Wallula mill restructuring charges,” as well as costs related to the acquisition and integration of Greif’s containerboard business and costs related to the closure of corrugated products facilities. Excluding those items, he said earnings were up $0.09 per share year over year, driven by several factors, including: Higher prices and mix in the legacy Packaging segment (+$0.17 per share) Lower fiber costs in legacy packaging (+$0.11) Lower maintenance outage expenses (+$0.09) Lower labor and operating costs in legacy packaging (+$0.08) → STMicronelectronics Sends Industrial Chips Into Overdri...