Packaging Corp. (PKG) Tops Q4 EPS by 5c; Guides Q2 EPS Below the Street
Packaging Corp. (NYSE: PKG) reported Q4 EPS of $1.08, $0.05 better than the analyst estimate of $1.03. Revenue for the quarter came in at $1.39 billion versus the consensus estimate of $1.43 billion.
GUIDANCE:
Packaging Corp. sees Q1 2016 EPS of $1.00, versus the consensus of $1.08.
Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “We performed very well operationally and our earnings exceeded fourth quarter guidance despite lower than expected containerboard production and corrugated products volume. For the year, our earnings of $4.53 per share, excluding special items, were only $.13 per share below last year’s record earnings despite lower white paper prices and mix which reduced 2015 earnings by $.38 per share.”
“Looking ahead to the first quarter compared to the fourth quarter,” Mr. Kowlzan added, “labor and benefits costs will be higher with annual wage increases and other timing-related expenses, and seasonally colder weather will increase wood and energy costs. Our tax rate will also be higher in the first quarter. These items will be partially offset by slightly higher corrugated products shipments and containerboard production, and lower scheduled mill outage costs. Finally, over the weekend Pulp and Paper Week, a trade publication, lowered its published prices for domestic linerboard and medium by $15 and $20 per ton, respectively, which will adversely affect earnings. Everything considered, we currently expect first quarter earnings of $1.00 per share.”
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