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Sep 30, 2023
PCA Q3 2023 Earnings Report
Net income and EPS decreased due to lower price and mix, and volume in the Packaging segment, higher depreciation expense, and lower volume in the Paper segment, but was partially offset by lower operating costs.
Key Takeaways
Packaging Corporation of America reported third quarter 2023 net income of $183 million, or $2.03 per share. Third quarter net sales were $1.9 billion.
Net income was $183 million, or $2.03 per share.
Net income excluding special items was $185 million, or $2.05 per share.
Net sales were $1.9 billion.
Corrugated products shipments per day were up 1.9%.
Revenue by Segment
Forward Guidance
Fourth quarter earnings are expected to be $1.76 per share.
Positive Outlook
- Less market-related downtime as inventories build back to appropriate levels.
- Higher shipments per day in corrugated products facilities.
- Lower scheduled maintenance outage expenses.
Challenges Ahead
- One less shipping day compared to the third quarter.
- Lower average prices due to the majority of the May decrease in the published benchmark index grades being realized throughout the third quarter as well as a seasonally less rich mix.
- Lower Paper segment volume compared to the seasonally stronger third quarter.
- Prices and mix are assumed to trend lower with declines in the index prices in the Paper segment.
- Operating and converting costs will increase driven by higher recycled fiber prices, seasonal energy costs, and the re-start of the Wallula mill.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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