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Dec 31, 2020
PCA Q4 2020 Earnings Report
Reported fourth quarter earnings, with net sales being $1.7 billion.
Key Takeaways
Packaging Corporation of America reported fourth quarter net income of $124 million, or $1.30 per share. Fourth quarter net sales were $1.7 billion, the same as in 2019.
Demand in Packaging segment remained very strong with record sales volumes.
Packaging segment price increases began late in the quarter.
Paper segment market conditions continue to be challenged due to the nationwide responses to help control the spread of the pandemic.
Jackson mill was restarted on white paper in October and produced both paper and containerboard during the quarter.
Revenue by Segment
Forward Guidance
PCA is not able to appropriately quantify their guidance for the first quarter.
Positive Outlook
- Packaging segment demand should remain strong.
- Shipments exceeding those of last year’s record first quarter.
- Continue producing containerboard at Jackson Mill.
- Realize the majority of recently announced packaging segment price increases during the first quarter.
- Average export prices to move higher as well.
Challenges Ahead
- Higher freight costs are expected to continue.
- Labor costs will be higher with annual wage inflation.
- Timing-related increases to fringes and benefits as we start a new year.
- Seasonally colder weather will increase energy and wood costs.
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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