Graphic Packaging Q3 sales, adjusted EPS slightly beat estimates
Overview
Consumer packaging maker's Q3 sales rose slightly, a slight beat of analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company cites higher input costs and unfavorable pricing for yr/yr adjusted EBITDA decline
Outlook
Company expects 2026 net sales of about $8.6 bln
Company sees 2026 adjusted EBITDA of about $1.05 bln
Company reaffirms 2026 adjusted cash flow guidance of $600 mln to $700 mln
Result Drivers
INPUT COST INFLATION - Co said higher commodity input and operating cost inflation drove adjusted EBITDA lower
UNFAVORABLE PRICING - Co said a 1% decrease in price contributed to lower profitability
STRUCTURAL COST REDUCTIONS - Co said cost reduction and productivity initiatives provided some offset to inflation pressures
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $2.19 bln | $2.17 bln (11 Analysts) |
Q3 Adjusted EPS | Beat | $0.23 | $0.22 (10 Analysts) |
Q3 EPS | $0.07 | ||
Q3 Adjusted Net Income | $67 mln | ||
Q3 Net Income | $22 mln | ||
Q3 Operating Income | $101 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy."
Wall Street's median 12-month price target for Graphic Packaging Holding Company is $10.00, about 7.2% above its November 2 closing price of $9.33
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Nov 3 - Aluminum packaging maker Ball Q3 revenue beats on higher packaging volumes
Nov 3 - DuPont Q3 sales beat estimates, lifts 2026 profit outlook
Nov 3 - Louisiana-Pacific Q3 adjusted EBITDA beats estimates on pricing
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)