NYSE$PKG

Packaging Corp of America · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Second quarter 2023 results were reported, reflecting a challenging demand environment and cost management efforts.

Packaging Corporation of America reported second quarter net income of $203 million, or $2.24 per share. Excluding special items, net income was $209 million, or $2.31 per share. Net sales for the quarter were $2.0 billion, compared to $2.2 billion in the same period last year.

  • Net income was $203 million, or $2.24 per share.
  • Excluding special items, net income was $209 million, or $2.31 per share.
  • Net sales reached $2.0 billion.
  • Shipments per day in the Packaging segment increased by 2.7% compared to the first quarter of 2023.

Headline financials

Total Revenue

$1.95B

Previous: $2.24B-12.7%
EPS (adj)

$2.31

Previous: $3.23-28.5%
Containerboard Production

1.1M

Previous: 1.3M-11.5%
Capital Expenditures

-$239M

Previous: -$398M+39.9%
Free Cash Flow

-$36.1M

Previous: -$96M+62.4%
Net Income

$203M

Previous: $302M-32.8%
Operating Income

$284M

Previous: $416M-31.6%
Gross Profit

$445M

Previous: $589M-24.5%
Cash & Equivalents

$477M

Previous: $667M-28.5%
Total Assets

$8.11B

Previous: $8.34B-2.8%
Stock-Based Comp

$9.5M

Previous: $9.3M+2.2%

Revenue & EPS history

PCA · Revenue · Quarterly

$1.95B

Q2 2023-12.7%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

PCA · $1.93B total across 2 segments · Q2 2023

  • Packaging
    $1.79B-13.4%
  • Paper
    $143M-4.7%

Forward guidance

The company expects third quarter earnings of $1.88 per share.

Tailwinds

  • Shipments per day are expected to improve versus the second quarter in the Packaging segment.
  • Seasonally stronger volume is expected in the Paper segment from back-to-school shipments.
  • Operating and converting costs should trend slightly higher primarily due to higher recycled fiber prices and seasonal energy cost.
  • Expect shipments per day to improve versus the second quarter.
  • Prices will be lower as a result of the previously published domestic containerboard price decreases along with slightly lower export prices

Headwinds

  • There is one less shipping day for the corrugated business.
  • Prices are expected to trend lower based on the recent declines in index prices.
  • Scheduled outage expenses will be higher by approximately ($.06) per share driven by the scheduled maintenance planned at our International Falls, MN mill.
  • Depreciation expense and tax rate to be slightly higher as well.
  • Operating and converting costs should trend slightly higher primarily due to higher recycled fiber prices and seasonal energy cost.

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 2023

Historical avgQ2 2023

-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%

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