Packaging Corporation (PKG) Q4 Earnings Beat, Sales Miss
Zacks Investment Research | Jan 29, 2019 09:17PM ET
Packaging Corporation of America (NYSE:PKG) delivered adjusted earnings per share of $2.17 in fourth-quarter 2018, surpassing the Zacks Consensus Estimate of $2.15. The reported figure also surged 39% year over year. Earnings were above management’s guidance of $2.15 per share. Results aided by better prices and mix in Packaging and Paper segments, as well as lower tax rate and lower mill indirect costs, partly offset by lower-than-expected volume in the Packaging segment as well as higher operating costs and freight expense.
Including one-time items, earnings were $2.16 per share compared with $2.84 earned in the year-ago quarter.
2018 Results
Packaging Corporation reported adjusted earnings per share of $8.03 in 2018, up 33.4% from $6.02 in the prior year. Earnings beat the Zacks Consensus Estimate of $8.02. Including one-time items, the bottom line was at $7.80, up 10.3% from $7.07 recorded in 2017.
Sales increased 8.8% year over year to $7.01 billion from $6.44 billion in 2017. The top line slightly missed the Zacks Consensus Estimate of $7.04 billion.
Operational Update
Sales for the fourth quarter were $1.75 billion, up 4% from $1.68 billion in the year-earlier quarter. The reported figure lagged the Zacks Consensus Estimate of $1.78 billion.
Cost of products sold rose 0.62% year over year to $1,321.2 million in the fourth quarter. Gross profit increased around 14.5% to $425.4 million from $371.4 million witnessed in the prior-year quarter. Selling, general and administrative expenses declined 2.6% to $129.7 million from $133.1 million incurred in the year-ago quarter.
Packaging Corporation of America Price, Consensus and EPS Surprise
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