Packaging Corporation of America beats sales expectations in Q1 but stock price drops

From Stock Story Media: 2025-04-22 16:58:00

Packaging Corporation of America (NYSE:PKG) exceeded revenue expectations in Q1 CY2025, with sales up 8.2% year on year to $2.14 billion. GAAP profit of $2.26 per share beat analysts’ consensus estimates by 2%. Operating margin increased to 13.1%. EPS guidance for Q2 CY2025 missed estimates by 6.6%. Sales volumes rose 7.6% year on year. Market capitalization stands at $16.26 billion. Chairman and CEO Mark W. Kowlzan highlighted record revenue and operational performance. Founded in 1959, Packaging Corporation of America produces containerboard and corrugated packaging products.
The company’s long-term sales growth has been sluggish at 4.3% annually. Over the last two years, revenue growth averaged 1.4%. Packaging Corporation of America reported a 8.2% year-on-year revenue growth in Q1 CY2025. Analysts expect a 4.5% revenue increase in the next 12 months. The company’s operating margin was 13.1% in Q1, up 3.2% year on year. EPS grew from $1.63 to $2.26 in the same quarter. Shares traded down 8.1% to $171.30 following the results.

We cover these highlights and more in our detailed research report on Packaging Corporation of America.



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