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How Packaging Corporation of America Performed in 2Q16

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Price movement

Packaging Corporation of America (PKG) rose by 0.42% to close at $74.34 per share during the third week of July 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.42%, 9.0%, and 20.1%, respectively, as of July 22. PKG is trading 7.3% above its 20-day moving average, 9.6% above its 50-day moving average, and 21.0% above its 200-day moving average.

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Related ETF and peers

The iShares Global Timber & Forestry ETF (WOOD) invests 3.8% of its holdings in PKG. The ETF tracks the 25 largest publicly listed companies that own or manage forests and timberlands. The YTD price movement of WOOD was 1.2% on July 22.

The market caps of PKG’s competitors are as follows:

  • International Paper (IP)—$18.7 billion
  • WestRock (WRK)—$11.0 billion
  • Domtar (UFS)—$2.2 billion

Performance of Packaging Corporation of America in 2Q16

Packaging Corporation of America reported 2Q16 net sales of $1.41 billion, a fall of 2.5%, as compared to net sales of $1.45 billion in 2Q15. Sales from the Packaging and Paper segments fell by 1.5% and 5.1%, respectively, in 2Q16 over 2Q15. The company’s gross profit margin and income from operations rose by 3.4% and 1.3%, respectively, in 2Q16 over 2Q15.

The company’s net income and EPS (earnings per share) rose to $115.9 million and $1.23, respectively, in 2Q16, as compared to $114.0 million and $1.16, respectively, in 2Q15. It reported EBITDA (earnings before interest, tax, depreciation, and amortization) excluding special items of $290.4 million in 2Q16, a rise of 1.1% over 2Q15. Its capital spending fell by 20.2%, and its cash balance rose by 30.5% in 2Q16 over 2Q15.

In the next part, we’ll take a look at Estée Lauder.

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