Let’s dig into the relative performance of International Paper (NYSE:IP) and its peers as we unravel the now-completed Q3 industrial packaging earnings season.
Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.
The 9 industrial packaging stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6% since the latest earnings results.
Best Q3: International Paper (NYSE:IP)
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
International Paper reported revenues of $4.69 billion, up 1.6% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS and EBITDA estimates.
"Our third quarter earnings are above our outlook," said Chairman and CEO Andy Silvernail.
Interestingly, the stock is up 8.4% since reporting and currently trades at $53.16.
Is now the time to buy International Paper? Access our full analysis of the earnings results here, it’s free.
Packaging Corporation of America (NYSE:PKG)
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products, also offering displays and protective packaging solutions.
Packaging Corporation of America reported revenues of $2.18 billion, up 12.7% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income estimates.
Packaging Corporation of America scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 4% since reporting. It currently trades at $225.21.
Is now the time to buy Packaging Corporation of America? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Silgan Holdings (NYSE:SLGN)
Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.
Silgan Holdings reported revenues of $1.75 billion, down 3.2% year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Silgan Holdings delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $51.05.
Read our full analysis of Silgan Holdings’s results here.
Sealed Air (NYSE:SEE)
Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Sealed Air reported revenues of $1.35 billion, down 2.7% year on year. This print met analysts’ expectations. It was a strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
The stock is down 10.2% since reporting and currently trades at $33.29.
Read our full, actionable report on Sealed Air here, it’s free.
Crown Holdings (NYSE:CCK)
Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Crown Holdings reported revenues of $3.07 billion, flat year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations.
The stock is down 13.5% since reporting and currently trades at $81.21.
Read our full, actionable report on Crown Holdings here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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