Research Desk Line-up: Sealed Air Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Packaging Corp. of America (NYSE: PKG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PKG, following the Company's disclosure of its financial results on October 25, 2017, for the third quarter fiscal 2017. The producer of containerboard products and uncoated freesheet's revenue surpassed analysts' expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Packaging & Containers industry. Pro-TD has currently selected Sealed Air Corporation (NYSE: SEE) for due-diligence and potential coverage as the Company announced on November 08, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Sealed Air when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PKG; also brushing on SEE. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=PKG

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Earnings Reviewed

For three months ended September 30, 2017, Packaging Corp.'s net revenues increased 10.5% to $1.64 billion from $1.48 billion in Q3 FY16. Net revenue surpassed analysts' expectations of $1.62 billion.

During Q3 FY17, the Company's gross profit increased 20.5% to $397.3 million from $329.5 million in the same period last year. For the reported quarter, the Company's gross margin increased 200 basis points to 24.2% of revenue from 22.2% of revenue in Q3 FY16.

During Q3 FY17, the Company's earnings before interest, tax, depreciation, and amortization (EBITDA) increased 15.4% to $339.8 million from $294.4 million in the same period last year. During Q3 FY17, the Company's adjusted EBITDA increased 21.7% to $363.9 million from $298.9 million in the same period last year. For the reported quarter, the Company's adjusted EBITDA margin increased 210 basis points to 22.2% of revenue from 20.1% of revenue in Q3 FY16.

During Q3 FY17, the Company's operating income increased 17.4% to $242.3 million from $206.4 million in the same period last year. For the reported quarter, the Company's operating margin increased 90 basis points to 14.8% of revenue from 13.9% of revenue in the third quarter of last year.

For the reported quarter, Packaging Corp.'s net income increased 16.6% to $139.1 million on a y-o-y basis from $119.3 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 16.7% to $1.47 on a y-o-y basis from $1.26 in the same period last year. Net income included the impact of special items expense primarily related to discontinuing paper operations. For the reported quarter, Packaging Corp.'s adjusted net income increased 29.5% to $158.8 million on a y-o-y basis from $122.6 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS increased 29.2% to $1.68 on a y-o-y basis from $1.30 in the same period last year. Diluted EPS was below analysts' expectations of $1.69.

Packaging Corp.'s Segment Details

Packaging - During Q3 FY17, the Packaging segment's revenue increased 15.3% to $1.35 billion from $1.17 billion in the same period last year. For the reported quarter, the segment's income increased 45.6% to $261.5 million from $179.6 million in the third quarter of 2016. For the reported quarter, the segment's adjusted EBITDA increased 33.3% to $341.3 million from $256 million in Q3 FY16.

Paper -During Q3 FY17, the Paper segment's revenue decreased 7.3% to $271.4 million from $292.8 million in the same period last year. For the reported quarter, the segment's loss was $0.7 million compared to income of $44.5 million in the third quarter of 2016. For the reported quarter, the segment's adjusted EBITDA decreased 33.6% to $39.4 million from $59.3 million in Q3 FY16.

Corporate and Other - During Q3 FY17, the Company's Corporate and Other segment's revenue decreased 8.3% to $22.1 million from $24.1 million in the same period last year. For the reported quarter, the segment's loss was $18.5 million compared to loss of $17.7 million in the third quarter of 2016. For the reported quarter, the segment's adjusted EBITDA was negative $16.8 million compared to negative $16.4 million in Q3 FY16.

Balance Sheet

As on September 30, 2017, Packaging Corp.'s cash and cash equivalents increased 54.8% to $370.5 million from $239.3 million on December 31, 2016. For the reported quarter, the Company's long-term debt decreased 6.2% to $2.48 billion from $2.64 billion in Q4 FY16.

For the reported quarter, the Company's net receivables increased 21.1% to $851.3 million from $703.1 million in the fourth quarter of 2016. During Q3 FY17, Packaging Corp.'s trade payables increased 11.4% to $666.5 million from $598.3 million in Q4 FY16.

During Q3 FY17, the Company's cash provided by operating activities decreased 10.7% to $197.7 million from $221.5 million in Q2 FY17.

Stock Performance

On Tuesday, November 14, 2017, the stock closed the trading session at $112.71, slightly rising 0.31% from its previous closing price of $112.36. A total volume of 454.94 thousand shares have exchanged hands. Packaging Corp. of America's stock price skyrocketed 1.14% in the last three months, 12.09% in the past six months, and 31.10% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 32.88%. The stock is trading at a PE ratio of 20.86 and has a dividend yield of 2.24%. At Tuesday's closing price, the stock's net capitalization stands at $10.53 billion.

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