Graphic Packaging Holding (GPK) reports Q3: everything you need to know ahead of earnings
Consumer packaging solutions provider Graphic Packaging Holding (NYSE:GPK) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Graphic Packaging Holding beat analysts’ revenue expectations last quarter, reporting revenues of $2.19 billion, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Is Graphic Packaging Holding a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Graphic Packaging Holding’s revenue to decline 1.6% year on year, in line with the 1.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Graphic Packaging Holding has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Graphic Packaging Holding’s peers in the industrial packaging segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Avery Dennison delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 2.6%, and Crown Holdings reported revenues up 15.9%, topping estimates by 8.4%. Avery Dennison’s stock price was unchanged after the resultsand Crown Holdings’s price followed a similar reaction.
Read our full analysis of Avery Dennison’s results here and Crown Holdings’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the industrial packaging stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Graphic Packaging Holding is up 4% during the same time and is heading into earnings with an average analyst price target of $10.95 (compared to the current share price of $8.96).
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