Post-Earnings Research - Packaging Corp. of America

LONDON, November 6, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings research on Packaging Corporation of America (NYSE: PKG). On October 20, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Packaging Corp. of America (Packaging Corp.) The company's Q3 FY14 is the 8^th consecutive quarter of record earnings according to its CEO, Mark W. Kowlzan. Packaging Corp.'s net sales increased by a massive 80% on a Y-o-Y basis and diluted EPS grew $0.19 from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Packaging Corp. reported net sales of $1,518.9 million compared to $845.4 million in the same period last year. The company's net sales during the reported quarter came marginally above Bloomberg analysts' forecast of $1,500.0 million. Gross profit for Q3 FY14 was $320.3 million, compared to $227.6 million in the prior-year quarter. The company's operating income increased to $188.4 million in Q3 FY14, from $142.8 million in the year-ago quarter. Further, net income for the quarter broadened to $104.4 million, or $1.06 per diluted share, from $84.7 million, or $0.87 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report net income of $123.7 million, or $1.26 per diluted share, in Q3 FY14. The free research on PKG can be downloaded as in PDF format at:

http://www.Investor-Edge.com/PKGFreeReport

Commenting on reported results, the  CEO of Packaging Corp., said that the company's record earnings were driven by strong sales volume, record mill productivity, and mill cost reductions.

On October 25, 2013, the company acquired Boise Inc. (Boise). The reported quarter net income included after-tax charges for the Boise integration, debt refinancing and DeRidder mill restructuring of $20 million, or $0.20 per share, including cash charges of $6 million, or $0.06 per share, and non-cash charges of $14 million, or $0.14 per share. Excluding special items, net income for Q3 FY14 was $123.9 million, or $1.26 per diluted share, compared to $89.4 million, or $0.92 per diluted share in the corresponding quarter last year.

Commenting on the Boise acquisition and DeRidder mill restructuring, Mr. Kowlzan stated that the integration of Boise packaging continues to generate significant synergies, and operational improvements in White Papers have resulted in lower costs and higher margins. He also added that the conversion of the No.3 newsprint machine to containerboard at DeRidder was completed on October 17, two weeks ahead of schedule. With the DeRidder machine conversion, the CEO anticipates higher mill production, which will allow the company to reduce its outside purchases of containerboard in Q4 FY14. Sign up and read the free analyst's notes on PKG at:

http://www.Investor-Edge.com/PKG-06112014

Mr. Kowlzan also said that corrugated products shipments are expected to be lower than in Q3 2014 with three less shipping days, and that the company expects seasonally lower white paper shipments in the fourth quarter. He further informed that amortization of annual outage repair costs will be about $0.07 per share higher than Q3, and that the company expects to face seasonal increases in fuel and transportation costs in Q4. Thereby, considering these items, the company estimates Q4 earnings of $1.16 per share, he added.

Stock Performance      

On the day following the earnings release, October 21, 2014, Packaging Corp.'s stock gained a solid 9.57%, and ended the session at $69.13. Although the stock has moved both ways since then, the gains have outweighed the losses so far. On the last close, Wednesday, November 05, 2014, the stock finished nearly flat at $72.35, after vacillating between $71.94 and $73.09. A total of 0.87 million shares were traded, which was below its three months average volume of 1.16 million shares. Over the previous three trading sessions and last one month, the company's shares have advanced 0.37% and 13.45%, respectively. Also, the stock has gained 14.33% from the beginning of 2014. Shares in Packaging Corp. closed above their 50-day and 200-day moving averages of $66.25 and $67.99, respectively. Furthermore, the stock traded at a PE ratio of 11.55 and has a Relative Strength Index (RSI) of 67.61. Visit Investor-Edge and access the latest research on PKG at:

http://www.Investor-Edge.com/PKGEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month Packaging Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on PKG is available at:

http://www.Investor-Edge.com/PKGInsiderTrading

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