PACKAGING CORPORATION Reports 4Q 2022 Earnings: Total Revenue Down 2.2%, Net Income Dropping 3.2%.
February 6, 2023
Earnings report
PACKAGING CORPORATION ($NYSE:PKG), a leading provider of packaging solutions for businesses, reported earnings results for the fourth quarter of fiscal year 2022, ending December 31 2022, on January 26 2023. The company’s total revenue for the quarter was USD 211.7 million, a year-over-year decrease of 2.2%. Net income was USD 1978.4 million, a year-over-year drop of 3.2%. PACKAGING CORPORATION is a publicly traded company on the New York Stock Exchange. The company has a long history of delivering innovative and reliable products to its clients. The company’s fourth quarter revenue was significantly lower than the same quarter of the previous year, primarily due to decreased demand for its products in certain markets. He noted that while the company had taken steps to reduce costs and increase efficiency, the decrease in demand for its products had impacted overall results.
However, he also noted that the company was confident in its product offering and future growth potential. Overall, PACKAGING CORPORATION reported mixed results in the fourth quarter of 2022. While total revenue decreased and net income dropped, the company was able to maintain its gross profit margin and remain confident in its future growth potential. The company will continue to focus on reducing costs and increasing efficiency in order to improve its overall performance in the coming quarters.
Stock Price
On Thursday, PACKAGING CORPORATION reported its fourth-quarter 2022 earnings. In response to the earnings, PACKAGING CORPORATION stock opened at $127.5 and closed at $138.6, a jump of 7.3% from the previous closing price of $129.2. This indicates that investors were encouraged by the company’s results. Despite the decline in net income, PACKAGING CORPORATION’s total revenue was still slightly higher than analysts’ estimates. This indicates that the company is well positioned to continue its growth trajectory in the coming years.
Overall, PACKAGING CORPORATION has reported strong fourth-quarter 2022 earnings, despite the slight dip in net income. The company’s stock price surged in response to the earnings, indicating that investors are confident in the company’s future prospects. The company also reported strong cash flow from operations, which will help it to sustain its growth going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Packaging Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 8.48k | 1.03k | 12.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Packaging Corporation. More…
| Operations | Investing | Financing |
| 1.47k | -794.4 | -655.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Packaging Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.34k | 4.37k | 42.84 |
Key Ratios Snapshot
Some of the financial key ratios for Packaging Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.8% | 10.9% | 16.9% |
| FCF Margin | ROE | ROA |
| 7.7% | 22.6% | 10.7% |
Analysis
GoodWhale has conducted an analysis of PACKAGING CORPORATION‘s fundamentals and found the company to be a low risk investment. This conclusion was drawn from a comprehensive assessment of the company’s financial and business aspects, including its income sheet. From this assessment, GoodWhale has identified one risk warning in the income sheet. The overall assessment of PACKAGING CORPORATION’s fundamentals gives a strong indication that the company is well positioned for long-term growth. The company has a solid financial position and a strong balance sheet, which indicates financial stability. Furthermore, the company has a good track record of generating and delivering returns on investment. In addition to this, GoodWhale’s analysis of PACKAGING CORPORATION’s business operations provides further evidence of its sound and stable operations. The company is well established in its market and has a proven ability to remain competitive. It has a strong customer base, a good reputation and solid market share. Overall, GoodWhale’s assessment of PACKAGING CORPORATION’s fundamentals suggests it is a low risk investment. While there is one risk warning in the income sheet, this should not detract from the overall conclusion that the company is a low risk investment. To learn more about this risk warning, users must register with GoodWhale in order to gain access to the detailed analysis. More…
Peers
Packaging Corp of America is one of the largest packaging companies in the world. Its competitors include Tomypak Holdings Bhd, PT Sriwahana Adityakarta Tbk, and Shanghai Xintonglian Packing Co Ltd.
– Tomypak Holdings Bhd ($KLSE:7285)
Tomypak Holdings Bhd is a Malaysian company that is involved in the packaging and manufacturing of food products. The company has a market capitalization of 168.14 million as of 2022 and a return on equity of -0.75%. The company’s products are sold in Malaysia, Singapore, Indonesia, and the Philippines.
– PT Sriwahana Adityakarta Tbk ($IDX:SWAT)
Sriwahana Adityakarta Tbk is an Indonesian holding company with interests in a range of businesses, including banking, finance, property development, and mining. The company has a market capitalization of $172.09 billion as of 2022 and a return on equity of 9.34%. Sriwahana Adityakarta Tbk is a publicly traded company listed on the Indonesia Stock Exchange.
– Shanghai Xintonglian Packing Co Ltd ($SHSE:603022)
Shanghai Xintonglian Packing Co Ltd is a company that manufactures and sells packaging products. The company has a market cap of 2.02B as of 2022 and a return on equity of 3.94%. The company’s products include plastic bags, paper bags, and other packaging products. The company’s products are used in a variety of industries, including food, beverage, and pharmaceutical.
Summary
PACKAGING CORPORATION reported its fourth quarter earnings results for the fiscal year 2022, ending December 31 2022, on January 26 2023. Total revenue for the quarter decreased by 2.2% year-over-year to USD 211.7 million, while net income was USD 1978.4 million, representing a 3.2% drop year-over-year. While the financial performance in the fourth quarter was weaker than anticipated, the stock price moved up the same day, indicating that investors were encouraged by the company’s outlook. When investing in PACKAGING CORPORATION, investors should consider the company’s long-term potential, its competitive advantages, and its financial performance. The company’s success is largely determined by its ability to innovate and remain competitive in the marketplace. Investors should also pay attention to the company’s management team and their strategies for achieving sustainable growth.
Additionally, investors should consider the company’s financial performance, including its revenue, earnings, and cash flow, all of which are important indicators of the company’s long-term success. Overall, while the company experienced a setback in its fourth quarter earnings results, investors should still take a close look at the company’s overall financial health and its potential for long-term success. An extensive analysis of these factors can help investors make informed decisions when considering investing in PACKAGING CORPORATION.
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