NYSE$PKG

Packaging Corp of America · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

PCA reported first quarter results, driven by strong demand in the Packaging segment.

Packaging Corporation of America reported first quarter net income of $142 million, or $1.49 per share. Excluding special items, net income was $143 million, or $1.50 per share. First quarter net sales were $1.7 billion, the same as the prior year.

  • Record first quarter volume in containerboard mills.
  • All-time quarterly volume record in corrugated products plants.
  • Containerboard inventory was at the lowest level since the acquisition of the Boise packaging business.
  • Demand surge experienced in the Packaging business in the first quarter, with the second quarter beginning strong as well.

Headline financials

Total Revenue

$1.71B

Previous: $1.73B-1.4%
EPS (adj)

$1.50

Previous: $1.98-24.2%
Containerboard Production

1.0M

No prior period
Capital Expenditures

-$70.5M

Previous: -$78.8M+10.5%
Free Cash Flow

$71.2M

Previous: $108M-34.1%
Net Income

$142M

Previous: $187M-24.1%
Operating Income

$209M

Previous: $275M-24.1%
Gross Profit

$365M

Previous: $421M-13.4%
Cash & Equivalents

$764M

Previous: $442M+72.7%
Total Assets

$7.35B

Previous: $6.93B+6.0%
Stock-Based Comp

$10.1M

Previous: $6.9M+46.4%

Revenue & EPS history

PCA · Revenue · Quarterly

$1.71B

Q1 2020-1.4%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

PCA · $1.68B total across 2 segments · Q1 2020

  • Packaging
    $1.47B
  • Paper
    $217M

Forward guidance

Due to the uncertain scope and duration of the pandemic, and the timing of the global recovery and economic normalization, PCA is not able to properly quantify guidance for the second quarter.

Tailwinds

  • Products are essential to the response efforts, recovery, and well-being of the country.
  • The need for cost-effective, sustainable, and renewable products will continue.
  • Demand surge in Packaging business in the first quarter, and the second quarter has also begun quite strong.
  • Containerboard inventory at the end of the first quarter was at the lowest levels.
  • Position as a primarily virgin fiber producer minimizes the impact of recycled fiber prices compared to other producers.

Headwinds

  • Uncertain scope and duration of the pandemic.
  • Timing of the global recovery and economic normalization is unknown.
  • Demand in certain end markets will return to more normal growth trends at some point.
  • Impossible to predict what additional health-related measures will be or must be taken.
  • Such events and actions could adversely impact the operation of facilities and the availability of services and products from suppliers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.0%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.2%

Avg return

30 days after

45%

31 / 69 earnings

Positive

+14.3%

Q1 2020

Best reaction

-13.8%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.8%+8.5%+5.1%
Q4 2025-2.5%+0.0%+3.8%
Q3 2025+2.3%-1.2%-5.5%
Q2 2025-1.6%+0.8%+9.5%
Q1 2025-0.9%-0.0%+2.3%
Q4 2024-9.8%-11.4%-10.6%
Q3 2024+4.4%+3.1%+12.0%
Q2 2024-0.1%+2.9%+4.3%
Q1 2024-5.0%-3.9%+0.8%
Q4 2023+3.1%+1.9%+5.4%
Q3 2023+3.1%+3.9%+6.7%
Q2 2023+11.1%+11.3%+5.9%
Q1 2023-6.2%-5.6%-11.0%
Q4 2022+6.6%+6.7%+6.0%
Q3 2022-0.9%+3.2%+14.0%
Q2 2022-3.3%-0.7%-1.2%
Q1 2022-1.1%-0.0%-4.9%
Q4 2021+6.3%+11.6%+10.8%
Q3 2021+1.5%+2.5%-1.4%
Q2 2021+3.3%+5.9%+12.2%
Q1 2021+1.7%+3.7%+4.5%
Q4 2020-5.8%-3.7%-5.6%
Q3 2020-4.4%-4.0%+10.5%
Q2 2020-1.5%-7.2%-1.4%
Q1 2020+14.3%+10.2%+19.2%
Q4 2019-4.6%-6.9%-13.2%
Q3 2019-0.1%+3.6%+2.1%
Q2 2019+0.7%+0.8%-3.1%
Q1 2019-0.6%+0.4%-7.6%
Q4 2018-0.5%+1.9%+2.3%
Q3 2018+2.3%+2.7%+9.9%
Q2 2018-4.6%-4.5%-4.9%
Q1 2018+0.5%-0.9%+3.9%
Q4 2017-0.3%-2.3%-5.9%
Q3 2017-0.0%-2.6%-6.0%
Q2 2017+1.8%+0.8%+1.6%
Q1 2017+6.2%+4.5%+8.3%
Q4 2016-1.5%+0.7%+0.2%
Q3 2016-3.2%-1.3%+4.5%
Q2 2016+0.9%+1.2%+6.3%
Q1 2016+1.2%
Q4 2015-13.8%
Q3 2015-6.9%
Q2 2015+7.2%
Q1 2015-10.1%
Q4 2014-4.7%
Q3 2014+10.9%
Q2 2014-3.0%
Q1 2014-1.1%
Q4 2013+10.0%
Q3 2013+0.5%
Q2 2013-1.2%
Q1 2013+5.2%
Q4 2012-1.8%
Q3 2012+3.0%
Q2 2012+3.7%
Q1 2012+1.6%
Q4 2011-1.8%
Q3 2011+2.0%
Q2 2011-9.7%
Q1 2010+1.6%
Q1 2011+1.1%
Q4 2008-3.8%
Q4 2010-3.8%
Q3 2009+2.5%
Q3 2010+2.5%
Q2 2009+0.0%
Q2 2010+0.0%
Q4 2009+0.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro