NYSE$PKG

Packaging Corp of America · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

PCA reported second quarter results with net income of $57 million and EPS of $0.59, but excluding special items, net income was $132 million and EPS was $1.38.

Packaging Corporation of America reported a decrease in net income for the second quarter of 2020 compared to the previous year. Net income was $57 million, or $0.59 per share, while excluding special items, net income was $132 million, or $1.38 per share. Net sales also decreased from $1.76 billion in 2019 to $1.54 billion in 2020. The company faced challenges in the Paper segment due to the COVID-19 pandemic, but saw strong performance in the Packaging segment.

  • Net income was $57 million, or $0.59 per share.
  • Excluding special items, net income was $132 million, or $1.38 per share.
  • Net sales were $1.54 billion, down from $1.76 billion in the previous year.
  • Packaging segment saw an increase in corrugated products shipments and shipments per day by 1.2%.

Headline financials

Total Revenue

$1.54B

Previous: $1.76B-12.4%
EPS (adj)

$1.38

Previous: $2.04-32.4%
Containerboard Production

1.1M

No prior period
Capital Expenditures

-$151M

Previous: -$171M+11.5%
Free Cash Flow

-$94.5M

Previous: $22.7M-516.3%
Net Income

$56.7M

Previous: $194M-70.7%
Operating Income

$116M

Previous: $280M-58.6%
Gross Profit

$326M

Previous: $428M-23.9%
Cash & Equivalents

$853M

Previous: $569M+49.9%
Total Assets

$7.27B

Previous: $7.07B+2.8%
Stock-Based Comp

$7.7M

Previous: $11.7M-34.2%

Revenue & EPS history

PCA · Revenue · Quarterly

$1.54B

Q2 2020-12.4%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

PCA · $1.53B total across 2 segments · Q2 2020

  • Packaging
    $1.41B
  • Paper
    $123M

Forward guidance

Looking ahead to the third quarter, the company will stay focused on preserving financial and balance sheet strength during these uncertain times. Corrugated products demand has performed quite well so far this year, and the company expects the third quarter to be even stronger. The actions being taken in the Paper business have already been announced, and the company will continue to evaluate the demand for its paper products throughout the third quarter. Due to changing shelter-in-place and lockdown conditions across the country, the company is not able to appropriately quantify its guidance for the third quarter.

Tailwinds

  • Corrugated products demand has performed quite well so far this year.
  • Expect the third quarter to be even stronger for corrugated products demand.
  • Replenished containerboard inventories at the start of the third quarter.
  • Focused on preserving financial and balance sheet strength.
  • Well-positioned to manage whatever lies ahead.

Headwinds

  • Shelter-in-place and lockdown conditions continue to change constantly across the country.
  • Such events and actions could adversely impact expectations and the operation of facilities.
  • Availability of services and products from suppliers could be affected.
  • Actions being taken in the Paper business.
  • Cannot appropriately quantify guidance for the third quarter.

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 Q2 2020

Historical avgQ2 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