Graphic Packaging to Announce Q1 Earnings on May 5
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GPK?
Source: seekingalpha
- Earnings Announcement: Graphic Packaging Holding (GPK) is set to release its Q1 2023 earnings on May 5 before market open, with consensus EPS estimated at $0.06, reflecting an 88.2% year-over-year decline, and revenue expected at $2.05 billion, down 3.3% year-over-year, indicating significant profitability challenges ahead.
- Historical Performance: Over the past two years, GPK has surpassed EPS estimates 63% of the time and revenue estimates 38% of the time, although recent trends suggest declining profitability, which may impact investor confidence moving forward.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and eight downward revisions, while revenue estimates saw two upward and five downward revisions, reflecting a pessimistic outlook from the market regarding the company's future performance, potentially leading to stock price volatility.
- Market Reaction: Analysts downgraded GPK's rating at the Raymond James conference, indicating concerns about the company's growth potential, which may influence investor decisions and affect the stock's performance in the near term.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GPK?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GPK
Wall Street analysts forecast GPK stock price to rise
9 Analyst Rating
1 Buy
7 Hold
1 Sell
Hold
Current: 9.700
Low
12.00
Averages
17.00
High
23.00
Current: 9.700
Low
12.00
Averages
17.00
High
23.00
About GPK
Graphic Packaging Holding Company is a consumer packaging provider. It produces consumer goods packaging made from renewable or recycled materials. It designs and manufactures packaging solutions including cartons, multipack cartons, trays, carriers, paperboard canisters, cups and bowls made from unbleached paperboard, recycled paperboard, and bleached paperboard. Its segments include Americas Paperboard Packaging and International Paperboard Packaging. The Americas Paperboard Packaging segment includes paperboard packaging sold primarily to consumer-packaged goods (CPG) companies serving the food, beverage, and consumer product markets and cups, lids and food containers sold primarily to foodservice companies and quick-service restaurants (QSR) in the Americas. The International Paperboard Packaging segment includes paperboard packaging sold primarily to CPG companies serving the food, beverage and consumer product markets, including healthcare and beauty, outside the Americas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Graphic Packaging to Announce Q1 Earnings on May 5
- Earnings Announcement: Graphic Packaging Holding (GPK) is set to release its Q1 2023 earnings on May 5 before market open, with consensus EPS estimated at $0.06, reflecting an 88.2% year-over-year decline, and revenue expected at $2.05 billion, down 3.3% year-over-year, indicating significant profitability challenges ahead.
- Historical Performance: Over the past two years, GPK has surpassed EPS estimates 63% of the time and revenue estimates 38% of the time, although recent trends suggest declining profitability, which may impact investor confidence moving forward.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and eight downward revisions, while revenue estimates saw two upward and five downward revisions, reflecting a pessimistic outlook from the market regarding the company's future performance, potentially leading to stock price volatility.
- Market Reaction: Analysts downgraded GPK's rating at the Raymond James conference, indicating concerns about the company's growth potential, which may influence investor decisions and affect the stock's performance in the near term.
See More
Graphic Packaging Signs 250 MW Solar Agreement with NextEra Energy
- Renewable Energy Procurement: Graphic Packaging has signed an agreement with NextEra Energy to build a 250 MW solar power plant in Texas, aiming to source renewable electricity and reduce greenhouse gas emissions, which is expected to significantly enhance the company's environmental profile.
- Project Scale and Location: The solar plant, named Selenite Springs Energy Center, will be located in the ERCOT power market and is expected to commence commercial operations by the end of 2027, marking a significant step in the company's renewable energy strategy.
- Electricity Usage Coverage: Graphic Packaging will be the sole buyer of the facility's renewable energy attribute certificates, which are expected to cover 43% of its electricity usage in the U.S. and Canada by 2025, further driving the company's transition towards sustainability.
- Emission Reduction Goals: This deal represents Graphic Packaging's largest virtual power purchase agreement to date, aligning with its target to reduce global Scope 1 and 2 emissions by 50.4% by 2032, and is projected to increase its total global purchased renewable electricity to approximately 49%.
See More
Graphic Packaging Partners with NextEra for Texas Solar Plant
- Renewable Energy Partnership: Graphic Packaging has signed an agreement with NextEra Energy Resources to construct a 250-megawatt solar power plant, aiming to reduce greenhouse gas emissions and enhance the company's environmental profile through renewable electricity sourcing.
- Growing Market Demand: This project addresses the rising electricity demand in Texas, particularly driven by data centers and industrial growth, which is expected to alleviate the generation capacity pressures faced by the state's grid operator, ERCOT.
- Positive Stock Reaction: Following the announcement, Graphic Packaging's shares rose 1.7% in premarket trading, indicating market approval of the company's sustainability strategy and potentially attracting more investor interest.
- Strategic Implications: By investing in renewable energy, Graphic Packaging not only complies with environmental regulations but may also gain a competitive edge in the future market, enhancing its position within the packaging industry.
See More
Graphic Packaging Partners with NextEra for Major Solar Power Purchase Agreement
- Renewable Energy Commitment: Graphic Packaging's virtual power purchase agreement with NextEra Energy Resources will facilitate the construction of a 250-megawatt solar plant in Texas, expected to commence commercial operations by the end of 2027, significantly increasing the company's renewable electricity procurement and aiding its goal of achieving net-zero emissions by 2050.
- Success in Europe: This North American agreement builds on the momentum from a VPPA supported by the company in Spain, consisting of three solar plants projected to cover 70% of the company's energy demand in Europe, further solidifying its leadership in sustainability.
- Greenhouse Gas Reduction Goals: The Selenite Springs project is anticipated to raise Graphic Packaging's global renewable electricity procurement to approximately 49% and reduce global Scope 1 and 2 GHG emissions by about 20% by 2032, which is critical for achieving its science-based targets.
- Customer Support and Market Positioning: By sourcing renewable electricity for nearly half of its global electricity needs, Graphic Packaging is better positioned to support its customers in their sustainability goals, thereby enhancing its competitive edge in the packaging industry.
See More
Graphic Packaging Partners with NextEra for Major Solar Energy Project
- Renewable Energy Commitment: Graphic Packaging has signed a virtual power purchase agreement with NextEra Energy Resources to build a 250-megawatt solar plant in Texas, furthering the company's commitment to reduce greenhouse gas emissions.
- Continuation of European Success: This North American agreement builds on a VPPA supported by the company in Spain, where three solar plants are expected to meet 70% of the company's energy demand in Europe, demonstrating ongoing efforts in sustainability.
- Emission Reduction Strategy: The Selenite Springs Energy Center is expected to begin commercial operations by the end of 2027, and as the company's largest VPPA project, it will help achieve a 50.4% reduction in global GHG emissions by 2032.
- Enhanced Customer Support: By sourcing renewable electricity for nearly half of its global electricity needs, Graphic Packaging is better positioned to support the sustainability goals of leading consumer brands, thereby enhancing its market competitiveness.
See More
Ball Corp. Receives Analyst Upgrade from Raymond James
- Analyst Confidence Boost: Raymond James analyst Matt Roberts upgraded Ball Corp.'s rating from Market Perform to Outperform, citing the company's beverage can business as benefiting from durable industry trends, indicating strong market potential.
- Inflation Resilience: Roberts noted that beverage cans demonstrate relative strength against inflation and shifts in consumer spending, suggesting that this business is more resilient compared to other packaging categories facing demand weakness.
- Lower Geopolitical Risks: Ball Corp.'s relatively modest exposure to Asia and the Middle East helps mitigate geopolitical and regional demand risks, providing greater stability amid global market fluctuations.
- Price Target Set: Raymond James set a price target of $73 for Ball Corp., implying approximately 14% upside from the previous closing price, reflecting a positive outlook on the company's future performance.
See More
Graphic Packaging to Announce Q1 Earnings on May 5
- Earnings Announcement: Graphic Packaging Holding (GPK) is set to release its Q1 2023 earnings on May 5 before market open, with consensus EPS estimated at $0.06, reflecting an 88.2% year-over-year decline, and revenue expected at $2.05 billion, down 3.3% year-over-year, indicating significant profitability challenges ahead.
- Historical Performance: Over the past two years, GPK has surpassed EPS estimates 63% of the time and revenue estimates 38% of the time, although recent trends suggest declining profitability, which may impact investor confidence moving forward.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and eight downward revisions, while revenue estimates saw two upward and five downward revisions, reflecting a pessimistic outlook from the market regarding the company's future performance, potentially leading to stock price volatility.
- Market Reaction: Analysts downgraded GPK's rating at the Raymond James conference, indicating concerns about the company's growth potential, which may influence investor decisions and affect the stock's performance in the near term.
See More
Graphic Packaging Signs 250 MW Solar Agreement with NextEra Energy
- Renewable Energy Procurement: Graphic Packaging has signed an agreement with NextEra Energy to build a 250 MW solar power plant in Texas, aiming to source renewable electricity and reduce greenhouse gas emissions, which is expected to significantly enhance the company's environmental profile.
- Project Scale and Location: The solar plant, named Selenite Springs Energy Center, will be located in the ERCOT power market and is expected to commence commercial operations by the end of 2027, marking a significant step in the company's renewable energy strategy.
- Electricity Usage Coverage: Graphic Packaging will be the sole buyer of the facility's renewable energy attribute certificates, which are expected to cover 43% of its electricity usage in the U.S. and Canada by 2025, further driving the company's transition towards sustainability.
- Emission Reduction Goals: This deal represents Graphic Packaging's largest virtual power purchase agreement to date, aligning with its target to reduce global Scope 1 and 2 emissions by 50.4% by 2032, and is projected to increase its total global purchased renewable electricity to approximately 49%.
See More
Graphic Packaging Partners with NextEra for Texas Solar Plant
- Renewable Energy Partnership: Graphic Packaging has signed an agreement with NextEra Energy Resources to construct a 250-megawatt solar power plant, aiming to reduce greenhouse gas emissions and enhance the company's environmental profile through renewable electricity sourcing.
- Growing Market Demand: This project addresses the rising electricity demand in Texas, particularly driven by data centers and industrial growth, which is expected to alleviate the generation capacity pressures faced by the state's grid operator, ERCOT.
- Positive Stock Reaction: Following the announcement, Graphic Packaging's shares rose 1.7% in premarket trading, indicating market approval of the company's sustainability strategy and potentially attracting more investor interest.
- Strategic Implications: By investing in renewable energy, Graphic Packaging not only complies with environmental regulations but may also gain a competitive edge in the future market, enhancing its position within the packaging industry.
See More
Graphic Packaging Partners with NextEra for Major Solar Power Purchase Agreement
- Renewable Energy Commitment: Graphic Packaging's virtual power purchase agreement with NextEra Energy Resources will facilitate the construction of a 250-megawatt solar plant in Texas, expected to commence commercial operations by the end of 2027, significantly increasing the company's renewable electricity procurement and aiding its goal of achieving net-zero emissions by 2050.
- Success in Europe: This North American agreement builds on the momentum from a VPPA supported by the company in Spain, consisting of three solar plants projected to cover 70% of the company's energy demand in Europe, further solidifying its leadership in sustainability.
- Greenhouse Gas Reduction Goals: The Selenite Springs project is anticipated to raise Graphic Packaging's global renewable electricity procurement to approximately 49% and reduce global Scope 1 and 2 GHG emissions by about 20% by 2032, which is critical for achieving its science-based targets.
- Customer Support and Market Positioning: By sourcing renewable electricity for nearly half of its global electricity needs, Graphic Packaging is better positioned to support its customers in their sustainability goals, thereby enhancing its competitive edge in the packaging industry.
See More
Graphic Packaging Partners with NextEra for Major Solar Energy Project
- Renewable Energy Commitment: Graphic Packaging has signed a virtual power purchase agreement with NextEra Energy Resources to build a 250-megawatt solar plant in Texas, furthering the company's commitment to reduce greenhouse gas emissions.
- Continuation of European Success: This North American agreement builds on a VPPA supported by the company in Spain, where three solar plants are expected to meet 70% of the company's energy demand in Europe, demonstrating ongoing efforts in sustainability.
- Emission Reduction Strategy: The Selenite Springs Energy Center is expected to begin commercial operations by the end of 2027, and as the company's largest VPPA project, it will help achieve a 50.4% reduction in global GHG emissions by 2032.
- Enhanced Customer Support: By sourcing renewable electricity for nearly half of its global electricity needs, Graphic Packaging is better positioned to support the sustainability goals of leading consumer brands, thereby enhancing its market competitiveness.
See More
Ball Corp. Receives Analyst Upgrade from Raymond James
- Analyst Confidence Boost: Raymond James analyst Matt Roberts upgraded Ball Corp.'s rating from Market Perform to Outperform, citing the company's beverage can business as benefiting from durable industry trends, indicating strong market potential.
- Inflation Resilience: Roberts noted that beverage cans demonstrate relative strength against inflation and shifts in consumer spending, suggesting that this business is more resilient compared to other packaging categories facing demand weakness.
- Lower Geopolitical Risks: Ball Corp.'s relatively modest exposure to Asia and the Middle East helps mitigate geopolitical and regional demand risks, providing greater stability amid global market fluctuations.
- Price Target Set: Raymond James set a price target of $73 for Ball Corp., implying approximately 14% upside from the previous closing price, reflecting a positive outlook on the company's future performance.
See More
