Wall Street analysts expect Packaging Corp. (PKG) to post quarterly earnings of $2.95 per share in its upcoming report, which indicates a year-over-year increase of 8.1%. Revenues are expected to be $2.56 billion, up 10.8% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 1.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Packaging Corp. metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus among analysts is that 'Segment Sales- Packaging' will reach $2.27 billion. The estimate points to a change of +6.6% from the year-ago quarter.
According to the collective judgment of analysts, 'Segment Sales- Corporate and Other' should come in at $24.93 million. The estimate points to a change of +3.4% from the year-ago quarter.
The combined assessment of analysts suggests that 'Segment Sales- Paper' will likely reach $160.15 million. The estimate suggests a change of -0.7% year over year.
Analysts predict that the 'Segment operating income (loss) excluding special items- Paper' will reach $37.40 million. Compared to the current estimate, the company reported $35.60 million in the same quarter of the previous year.
The average prediction of analysts places 'Segment operating income (loss) excluding special items- Packaging' at $397.65 million. Compared to the current estimate, the company reported $347.90 million in the same quarter of the previous year.
View all Key Company Metrics for Packaging Corp. here>>>Over the past month, Packaging Corp. shares have recorded returns of -1.3% versus the Zacks S&P 500 composite's +2.4% change. Based on its Zacks Rank #3 (Hold), PKG will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Packaging Corporation of America (PKG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).