Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Graphic Packaging Holding (NYSE:GPK) and the best and worst performers in the industrial packaging industry.
Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.
The 9 industrial packaging stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
While some industrial packaging stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.
Graphic Packaging Holding (NYSE:GPK)
Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.
Graphic Packaging Holding reported revenues of $2.22 billion, down 5.7% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS and sales volume estimates.
Michael Doss, the Company's President and CEO said, "In the third quarter, we saw our packaging volumes turn positive, after Europe's return to growth in the second quarter. Third quarter also saw the launch of new paperboard cup and container innovations for major Foodservice customers and the first-ever round BoardioTM paperboard canister for a leading collagen-protein brand. Our innovations are delivering real value for our customers and for consumers."
Unsurprisingly, the stock is down 9.8% since reporting and currently trades at $27.39.
Read our full report on Graphic Packaging Holding here, it’s free.
Best Q3: International Paper (NYSE:IP)
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
International Paper reported revenues of $4.69 billion, up 1.6% year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 13.5% since reporting. It currently trades at $55.66.
Is now the time to buy International Paper? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Silgan Holdings (NYSE:SLGN)
Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.
Silgan Holdings reported revenues of $1.75 billion, down 3.2% year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Silgan Holdings delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 3.3% since the results and currently trades at $52.51.
Read our full analysis of Silgan Holdings’s results here.
Packaging Corporation of America (NYSE:PKG)
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products, also offering displays and protective packaging solutions.
Packaging Corporation of America reported revenues of $2.18 billion, up 12.7% year on year. This number topped analysts’ expectations by 4.4%. It was an exceptional quarter as it also produced an impressive beat of analysts’ sales volume and adjusted operating income estimates.
Packaging Corporation of America delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 10.2% since reporting and currently trades at $238.72.
Read our full, actionable report on Packaging Corporation of America here, it’s free.
Crown Holdings (NYSE:CCK)
Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Crown Holdings reported revenues of $3.07 billion, flat year on year. This print met analysts’ expectations. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations.
The stock is down 9.8% since reporting and currently trades at $84.62.
Read our full, actionable report on Crown Holdings here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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