Packaging Corporation (PKG) Downgraded To Sell: Find Out Why
Zacks Investment Research | Jun 27, 2017 10:00PM ET
On Jun 28, Zacks Investment Research downgraded Packaging Corporation of America (NYSE:PKG) to a Zacks Rank #4 (Sell). Going by the Zacks model, companies holding a Zacks Rank #4 or #5 are likely to underperform the broader market.
Why the Downgrade?
Packaging Corporation projects second-quarter 2017 earnings to be roughly $1.45 per share. The company guided that mill maintenance outage costs will likely flare up in the second quarter as it has scheduled outages at its three largest containerboard mills.
The company currently estimates the total property damage and business interruption losses in the next quarter to be between $20 million and $25 million related to the DeRidder mill insurance claim. Packaging Corporation will claim these losses, subject to a $5-million deductible, under its property damage and business interruption insurance policy.
Packaging Corporation of America Price and Consensus
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