Packaging Corporation of America $PKG stock is testing a symmetrical triangleThe symmetrical triangle pattern is one of the most popular chart patterns in the world of technical analysis. This pattern is a result of the convergence of two lines that form a ... breakout as of January 29, 2023. The stock formed a doji candlestick above its 200 day moving average. Next week is pivotal for $PKG stock. The stock has a technical uptrend rating.
Packaging Corp. $PKG Stock Price Target Raised at Truist
Packaging Corp.’s price target was increased by Truist analyst Michael Roxland on January 27, 2023, to $144 from $138 while maintaining a Buy rating for the stock. Due to a strong sales mix in the company’s Q4 earnings, it was able to maintain margins despite weaker demand. Michael Roxland also mentions Packaging Corp.’s commitment to cutting costs and boosting productivity, which continues to produce sizable cost savings.
Packaging Corporation of America Reports Fourth Quarter and Full Year 2022 Results
On January 25, 2023, Packaging Corp. reported Q4 adjusted EPS of $2.35 versus the consensus estimate of $2.23. The company reported Q4 revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... of $1.98M versus the consensus estimate of $2.04B.
CEO Mark Kowlzan said, “Although demand in our Packaging segment was below our original expectations and we operated our system based on this lower demand, we were able to offset the negative impact through outstanding cost management and process optimization efforts at our mills and corrugated products plants. However, overall, our cost base continued to experience significant inflation compared to last year…Also, during the quarter we re-purchased over 3 million shares of our stock at an average price of $126.70 per share…Prices will move lower as a result of the recent decreases in the published domestic containerboard prices, and we are assuming lower export prices as well. Paper prices should move slightly higher with sales volume fairly flat. Labor costs and certain indirect costs will increase as some containerboard mill operations were temporarily idled during Q4. In addition, we anticipate higher labor and benefits costs and other timing-related expenses that occur at the beginning of a new year as well as higher prices for many chemicals, particularly starch and caustic soda…Lastly, we expect higher interest and non-operating pension expenses and a higher tax rate, but we will see some benefit from our recent share repurchases. Considering these items, we expect Q1 earnings of $2.23 per share.”