The earnings call highlighted significant revenue growth, record-breaking performance in the Packaging segment, and strong cash flow, indicating a robust financial position. However, the company faces challenges with increased operating costs and inventory management due to high demand and external factors like weather impacts. The overall sentiment is positive with strong growth indicators, despite some operational challenges.

Company Guidance

During Packaging Corporation of America's third quarter 2024 earnings call, the company reported a net income of $238 million, or $2.64 per share, which exceeded their guidance of $2.45 per share by $0.20. This outperformance was primarily due to higher volume in the Packaging and Paper segments and favorable pricing and mix in the Packaging segment. The company's net sales reached $2.2 billion, with an EBITDA of $461 million, reflecting a robust margin of 22.2% in the Packaging business. Despite record production levels, including all-time highs in containerboard production and box shipments, inventory levels were below target due to strong demand. Looking forward, PCA anticipates continued strength in the Packaging segment with expected fourth-quarter earnings of $2.47 per share, although operational costs are slated to rise due to increased energy and chemical expenses. The company also plans to manage its capital expenditures strategically, having spent approximately $700 million this year to enhance its box plant system and announcing intentions for further capacity expansions over the next few years.

Record-Breaking Revenue and Growth

PCA reported third quarter net income of $238 million or $2.64 per share compared to $185 million or $2.05 per share in the third quarter of 2023. Third quarter net sales increased from $1.9 billion in 2023 to $2.2 billion in 2024. Total company EBITDA, excluding special items, was $461 million in 2024, up from $388 million in 2023.

Packaging Segment Achievements

The Packaging segment achieved a record-breaking performance with shipments per day up 11.1% from last year's third quarter. The segment's EBITDA was $446 million with sales of $2 billion, resulting in a margin of 22.2% versus a 21.3% margin the previous year.

Strong Paper Segment Performance

The Paper segment showed strong performance with EBITDA of $43 million and sales of $159 million or a 27.0% margin compared to a 22.4% margin in the third quarter of 2023. Volume was up 4% compared to the previous year.

Substantial Free Cash Flow

Cash provided by operations during the quarter totaled $327 million, with free cash flow of $180 million. The company ended the quarter with $841 million of cash, including marketable securities.

Strong Demand and Growth Outlook

PCA expects demand in the Packaging segment to remain strong with continued realization from previously announced price increases and higher export prices.

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Packaging (PKG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

PKG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 25, 2018	2018 (Q2)	- / 2.08	1.52	36.84% (+0.56)	―	―
Oct 24, 2018	2018 (Q3)	- / 2.23	1.68	32.74% (+0.55)	―	―
Jan 29, 2019	2018 (Q4)	- / 2.17	1.56	39.10% (+0.61)	―	―
Apr 24, 2019	2019 (Q1)	- / 1.98	1.55	27.74% (+0.43)	―	―
Jul 24, 2019	2019 (Q2)	- / 2.04	2.08	-1.92% (-0.04)	―	―
Oct 23, 2019	2019 (Q3)	- / 1.92	2.23	-13.90% (-0.31)	―	―
Jan 29, 2020	2019 (Q4)	- / 1.71	2.17	-21.20% (-0.46)	―	―
Apr 27, 2020	2020 (Q1)	- / 1.50	1.98	-24.24% (-0.48)	―	―
Jul 28, 2020	2020 (Q2)	- / 1.38	2.04	-32.35% (-0.66)	―	―
Oct 26, 2020	2020 (Q3)	- / 1.57	1.92	-18.23% (-0.35)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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PKG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 22, 2024	$215.47	$227.39	+5.53%
Jul 23, 2024	$190.62	$191.08	+0.24%
Apr 22, 2024	$176.05	$167.79	-4.69%
Jan 24, 2024	$160.93	$167.43	+4.04%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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