Consumer packaging solutions provider Graphic Packaging Holding (NYSE: GPK) will be reporting earnings this Tuesday morning. Here’s what you need to know.
Graphic Packaging Holding beat analysts’ revenue expectations last quarter, reporting revenues of $2.10 billion, flat year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
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 3.3% year on year, improving from the 6.2% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. 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 Q1 results, giving us a hint as to what we can expect. Silgan Holdings delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 3.7%, and Crown Holdings reported revenues up 12.9%, topping estimates by 7.8%. Silgan Holdings traded up 4.6% following the results while Crown Holdings was down 1.4%.
Read our full analysis of Silgan Holdings’s results here and Crown Holdings’s results here.
There has been positive sentiment among investors in the industrial packaging segment, with share prices up 9.4% on average over the last month. Graphic Packaging Holding’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $11.29 (compared to the current share price of $9.64).
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