Packaging Corp (PKG) Q1 Earnings Beat, Sales Miss Estimates
Zacks Investment Research | Apr 28, 2019 09:09PM ET
Packaging Corporation of America (NYSE:PKG) delivered adjusted earnings per share of $1.98 in first-quarter 2019, surpassing the Zacks Consensus Estimate of $1.96. The reported figure also climbed 27.7% year over year. Earnings came in above management’s guidance of $1.97 per share. Results benefitted from higher prices and mix in both the Packaging and Paper segments, as well as lower annual outage expenses. However, lower volume in the Paper segment as well as higher material costs, fixed expenses and indirect and converting costs negated some of the gains.
Including one-time items, earnings came in at $1.97 per share compared with $1.48 earned in the year-ago quarter.
Operational Update
Sales for the first quarter were $1.73 billion, up 2.5% from $1.69 billion generated in the year-earlier quarter. The reported figure, however, lagged the Zacks Consensus Estimate of $1.75 billion.
Cost of products sold declined 1.7% year over year to $1,312.3 million in the first quarter. Gross profit increased around 18.3% to $421 million from $356 million witnessed in the prior-year quarter. Selling, general and administrative expenses flared up 3.7% to $140 million from $135 million incurred in the year-ago quarter.
Packaging Corporation of America Price, Consensus and EPS Surprise
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