Wall Street analysts expect Packaging Corp. (PKG) to post quarterly earnings of $2.31 per share in its upcoming report, which indicates a year-over-year decline of 6.9%. Revenues are expected to be $2.4 billion, up 10.7% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 4.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Packaging Corp. metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Segment Sales- Packaging' should arrive at $2.21 billion. The estimate suggests a change of +10.2% year over year.
The consensus estimate for 'Segment Sales- Corporate and Other' stands at $21.64 million. The estimate indicates a year-over-year change of +10.4%.
The collective assessment of analysts points to an estimated 'Segment Sales- Paper' of $160.04 million. The estimate suggests a change of +9.8% year over year.
Analysts forecast 'Segment operating income (loss) excluding special items- Packaging' to reach $317.11 million. The estimate is in contrast to the year-ago figure of $321.70 million.
Analysts predict that the 'Segment operating income (loss) excluding special items- Paper' will reach $32.53 million. Compared to the current estimate, the company reported $25.80 million in the same quarter of the previous year.
View all Key Company Metrics for Packaging Corp. here>>>Shares of Packaging Corp. have demonstrated returns of -2.4% over the past month compared to the Zacks S&P 500 composite's -0.6% change. With a Zacks Rank #3 (Hold), PKG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Packaging Corporation of America (PKG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).