What Happened?
Shares of packaging Corporation of America (NYSE:PKG) jumped 6.8% in the morning session after the company reported third-quarter earnings results that blew past analysts' revenue and EBITDA estimates. Despite a price increase, the top line benefitted from improved demand in the packaging segment. Zooming out, we think this was a good quarter with some key areas of upside.
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What The Market Is Telling Us
Packaging Corporation of America’s shares are not very volatile and have had no moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Packaging Corporation of America is up 39.4% since the beginning of the year, and at $228.38 per share, has set a new 52-week high. Investors who bought $1,000 worth of Packaging Corporation of America’s shares 5 years ago would now be looking at an investment worth $2,075.
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