Wed, Jan. 28, 9:05 AM
- D.A. Davidson upgrades Packaging Corp. of America (NYSE:PKG) to a Buy rating from Neutral on what it sees as an overreaction to the firm's Q1 guidance.
- The investment firm sets a $90 price target on shares.
- It's been a volatile week for the paper/containerboard sector after Rock-Tenn and MeadWestvaco announced their merger on Monday.
- PKG +2.5% premarket to $78.20.
Tue, Jan. 27, 1:20 PM
- Shares of Packaging Corp. of America (PKG -8%) decline after the company missed slightly with its Q4 report and issued disappointing guidance.
- Several sector peers are also lower: KapStone Paper & Packaging (NYSE:KS) -4.7%, Rock-Tenn (NYSE:RKT) -1.6%, International Paper (NYSE:IP) -1.3%.
- Yesterday, the sector was all smiles off M&A buzz.
Mon, Jan. 26, 6:51 PM
- Packaging Corp. of America's (NYSE:PKG) Q4 revenue rose 13% to a record $1.43B as its Boise acquisition helped boost shipments of corrugated products, but shares -7% AH as earnings and revenue missed estimates.
- PKG also issues downside guidance for Q1, seeing EPS of $1.07-$1.10 vs. $1.25 analyst consensus estimate, as it anticipates lost containerboard production of ~60K tons, higher operating costs from annual maintenance downtime at its two largest containerboard mills, and two fewer production days than in Q4.
- Q4 packaging sales rose 8.8% Y/Y to $1.12B, while shipments of corrugated products grew 5.4% and jumped 11% when including Boise.
- Containerboard production totaled 927K tons vs. 803K tons in the year-ago period and 858K in Q3, as the latest quarter included 58K tons produced on a machine converted to containerboard production from at its DeRidder, La., operation.
Mon, Jan. 26, 5:36 PM
Mon, Jan. 26, 9:52 AM
- A mega-merger in the paper industry between Rock-Tenn and MeadWestvaco has lifted other names in the sector fighting a tough tape.
- The delicate balance of pricing in the containerboard/packaging/paper sector is viewed as more stable with two giants combining.
- Advancers: Packaging Corp. of America (NYSE:PKG) +1.4%, International Paper (NYSE:IP) +0.7%, KapStone Paper and Packaging (NYSE:KS) +2.8%, Clearwater Paper (NYSE:CLW) +0.2%, Wausau Paper (NYSE:WPP) +0.1%, Orchids Paper Products (NYSEMKT:TIS) +0.3%.
- Previously: Rock-Tenn and MeadWestvaco up on paper
- Previously: Rock-Tenn and MeadWestvaco to merge
Sep. 11, 2014, 11:05 AM
- Presenting at the UBS Global Paper and Forest Products Conference this morning, International Paper (IP +2.5%) management says it's moved from a study phase on possible conversion to an MLP structure to a "more serious evaluation phase."
- At the same conference, KapStone (KS +2%) says it's taking a look at the MLP idea as well.
- Others in the industry also have their tails in the air: Rock-Tenn (RKT +2.2%), Packaging Corp. (PKG +1.3%), MeadWestvaco (MWV +1.9%).
- International Paper Tuesday night boosted its quarterly payout by 14% to $0.40 per share. The dividend is payable on Dec. 15 to holders of record on Nov. 17. The annualized yield is 3.2%.
Jul. 24, 2014, 2:04 PM
- Paper and containerboard stocks are notably strong as Perry Capital comes out positive on the group, citing a PWC study regarding the potential for MLP conversion.
- Perry believes managements can create master limited partnerships for their paper mills to drive share upside potential of 50%-100%, the fund firm says in its Q2 letter.
- CLW +12.4%, KS +9.7%, RKT +8.9%, IP +5.3%, PKG +4.8%.
Feb. 12, 2014, 9:10 AM
Jan. 2, 2014, 5:40 PM
Oct. 14, 2013, 5:04 PM
Sep. 16, 2013, 3:18 PM
- Packaging Corporation of America (PKG +8.4%) shares continue to run as Jefferies upgrades the company to Buy from Hold and raises its PT to $70 from $49 with a bull-case scenario of $88.
- Analyst Philip Ng believes the company's acquisition of Boise comes at an attractive multiple and called the deal "great."
Sep. 16, 2013, 9:17 AM
Sep. 16, 2013, 7:31 AM
- Packaging Corporation of America (PKG) agrees to acquire Boise (BZ) for $12.55 per share in cash, or nearly $2B. The sale is expected to close in Q4, subject to certain customary conditions and regulatory approval.
- PCA's containerboard capacity will increase to 3.7M tons from the current 2.6M and PCA will now have a market presence in the Pacific Northwest.
- Synergies are expected to generate pre-tax benefits of $105M, to be fully realized within 3 years of the closing, according to PCA management.
- Boise shareholders are getting 5x LTM EBITDA for their stock.
- BZ closed at $9.96 Friday evening, making the purchase price a 26% premium.
- Press release.
Jul. 16, 2013, 5:39 PM
Jul. 16, 2013, 5:26 PMMore on Packaging Corp Of America (PKG): Q2 beats on all counts as total sales ramp 12% higher Y/Y, driven by higher prices and higher corrugated products volume. Corrugated products shipments per workday were up 5.2%, and total shipments were up 6.8%, aided by one more workday in the quarter. For Q3, the company guides its EPS slightly ahead of the Street, now expecting an EPS of about $0.88, versus the Street view of $0.87. Shares +2.9% AH. | Comment!
Jul. 16, 2013, 5:05 PM
PKG vs. ETF Alternatives
Packaging Corporation of America is a producer of container board and corrugated products in the United States. The Company also produces multi-color boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.
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