With a market cap of $19.3 billion, Packaging Corporation of America (PKG) is a leading producer of containerboard and uncoated freesheet paper in North America. Based in Lake Forest, Illinois, it serves industries such as manufacturing, food, and retail through its packaging, paper, and corporate services segments.  The company is slated to announce its fiscal Q3 earnings results after the market closes on Tuesday, Oct. 22.

Ahead of this event, analysts expect PKG to report a profit of $2.47 per share, representing a 20.5% growth from $2.05 per share in the year-ago quarter. The company has consistently exceeded Wall Street's earnings expectations in the past four quarters. The company surpassed the consensus EPS estimate by a 3.8% margin in the most recent quarter.

For fiscal 2024, PKG's EPS is projected at $8.72, a slight rise from $8.70 in 2023, while fiscal 2025 forecasts suggest a 20.3% year-over-year growth, with EPS reaching $10.49.

In 2024, shares of Packaging Corporation of America have outperformed the broader markets, surging 32.2%, while the broader S&P 500 Index ($SPX) has gained 19.7%, and the Materials Select Sector SPDR Fund (XLB) has returned 12.4% on a YTD basis.

Shares of PKG recovered marginally following its Q2 earnings release on Jul. 23 due to better-than-expected adjusted EPS of $2.20 and revenue of $2.1 billion, driven by strong demand in the Packaging segment. The 9.2% year-over-year increase in corrugated product shipments and a higher-than-expected sales volume provided further support. Additionally, the company provided upbeat guidance for Q3 2024, forecasting improved prices and mix across segments, which boosted investor confidence.

Analysts' consensus view on PKG stock remains cautiously optimistic, with a "Moderate Buy" rating overall. Out of eight analysts covering the stock, four recommend a "Strong Buy" and four give a "Hold" rating. This configuration has remained steady over the past three months. As of writing, PKG is trading above the average analyst price target of $209. 

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.