Why Packaging Corp Of America (PKG) Shares Are Falling Today - Packaging Corp of America (NYSE:PKG)

Packaging Corp Of America PKG shares are down Tuesday morning as its first quarter 2023 results missed the Street expectations.
PKG reported sales of $1.98 billion, missing the consensus of $2.08 billion.
Sales from the Packaging segment fell 8% Y/Y on lower volume and unfavorable prices and mix.
Sales from the Paper segment declined 2% Y/Y in Q1.
In the Packaging segment, total corrugated products shipments and shipments per day declined ~13% Y/Y.
In the Paper segment, sales volume declined 23,000 tons Y/Y in Q1.
Gross profit declined 19% Y/Y to $431.4 million, with the margin contracting 310 basis points to 21.8%.
The operating margin contracted 300 basis points Y/Y to 13.7%, and operating income declined 24% Y/Y to $270.7 million.
EBITDA, excluding special items, of $404.9 million, declined 13% Y/Y.
Adjusted EPS of $2.20 missed the consensus of $2.27.
The company held $520.2 million in cash and equivalents as of March 31, 2023.
Outlook: PKG expects Q2 2023 EPS of $1.96, below the consensus of $2.55.
“Looking ahead as we move from the first and into the second quarter, although there is one less shipping day for the corrugated business, we expect improved volume in our Packaging segment. However, prices will be lower as a result of the previously published domestic containerboard price decreases along with lower export prices. Sales volume as well as prices and mix in the Paper segment are assumed to be slightly lower based on lower demand," said Mark W. Kowlzan, Chairman and CEO.
Price Action: PKG shares are trading lower by 6.15% at $136.00 premarket on the last check Tuesday.

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Why Packaging Corp Of America Shares Are Falling Today