Packaging Corp Stock Set to Report Q2 Earnings: What to Expect?

Packaging Corporation of America PKG is set to release second-quarter 2025 results on July 23, after the closing bell.

The Zacks Consensus Estimate for PKG’s second-quarter revenues is pegged at $2.16 billion, indicating 4.1% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.44 per share. The Zacks Consensus Estimate for PKG’s second-quarter earnings has moved 0.4% north in the past 60 days. The estimate indicates year-over-year growth of 10.9%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

PKG’s Earnings Surprise History

Packaging Corp’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 3.4%.

What the Zacks Model Unveils for Packaging Corp

Our model predicts an earnings beat for PKG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Packaging Corp has an Earnings ESP of +0.77%.

Zacks Rank: PKG currently carries a Zacks Rank of 3.

Factors Likely to Have Shaped PKG’s Q2 Performance

Packaging Corp’s second-quarter results are expected to reflect the impacts of lower containerboard volume. The price and mix impacts for the Packaging segment are expected to be favorable at 1.5% for the quarter, per our model.

Demand in the Packaging segment is expected to have been strong in the second quarter. Our model predicts the Packaging segment’s volume to increase 2.7% year over year in the quarter to be reported, indicating stable packaging demand.

The estimate for the segment’s quarterly revenues is pegged at $1.99 billion, suggesting growth of 4.2% from the year-ago quarter’s reported number. Our model estimates the segment’s operating income at $291 million, indicating growth of 4% from the prior-year reported figure.

In the Paper segment, prices and mix are expected to have increased 1% year over year. We expect volume to dip 7.9% year over year. 

The estimate for the Paper segment’s revenues is pegged at $140 million for the June-end quarter, suggesting a dip of 6.9% from the year-ago reported figure. The estimate for the segment’s operating income is $46 million, indicating a 75% rise from the prior-year quarter’s actual.

Packaging Corp’s Stock Price Performance

Over the past year, PKG shares have gained 7.7% against the industry’s 7.1% fall.

Stocks That Warrant a Look

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Emerson Electric Co. EMR, expected to release earnings on Aug 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.

Illinois Tool Works Inc. ITW, slated to release second-quarter 2025 results on July 30, has an Earnings ESP of +0.97% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Illinois Tool Works’ second-quarter 2025 earnings is pegged at $2.55 per share, suggesting a year-over-year rise of 0.4%. ITW has a trailing four-quarter average surprise of 3%.

Crown Holdings, Inc. CCK is scheduled to release second-quarter 2025 results on July 21. It currently has an Earnings ESP of +0.27% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Crown Holdings’ earnings is pegged at $1.86 per share, which indicates a year-over-year increase of 2.8%. CCK has a trailing four-quarter average surprise of 16.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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