Packaging Corp. of America is set to release its second-quarter results on Monday, providing insight into the company’s performance during this period. Here’s a summary of what you need to know:
Sales Expectations
According to FactSet, the container products producer is projected to report sales of $1.99 billion for the quarter, representing a decline from $2.24 billion reported in the same period last year.
Adjusted Earnings Forecast
FactSet also anticipates that the Lake Forest, Ill.-based company will post adjusted earnings of $1.93 per share, compared to $3.23 per share in the year-ago quarter.
Net Income Outlook
Packaging Corp. of America is expected to record a net income of $172.7 million, down from $301.5 million in the prior-year period, according to FactSet.
Key Areas to Watch
Inventory Levels
Investors will closely monitor the state of Packaging Corp. of America’s inventory destocking. Challenges have arisen as consumers prioritize spending on services rather than durable and non-durable goods, given ongoing inflation and higher interest rates. Last quarter, Thomas Hassfurther, the executive vice president of corrugated products, acknowledged the longer-term nature of this issue.
Weather Impact
Executive commentary on the extent to which weather events have disrupted operations, if at all, will be of interest. Packaging Corp. of America has a significant presence in the agricultural business in the Pacific Northwest and Florida, regions that Hassfurther highlighted last quarter as being affected by weather events. Additionally, recent wildfires in Canada and other weather events across the United States may have introduced further challenges since the previous quarter.
