Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Graphic Packaging Holding (NYSE: GPK) and the best and worst performers in the industrial packaging industry.

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 8 industrial packaging stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8%.

In light of this news, share prices of the companies have held steady as they are up 2.5% on average since the latest earnings results.

Graphic Packaging Holding (NYSE: GPK)

Founded in 1991, Graphic Packaging (NYSE: GPK) is a provider of paper-based packaging solutions for a wide range of products.

Graphic Packaging Holding reported revenues of $2.19 billion, down 1.2% year on year. This print exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ sales volume estimates but a significant miss of analysts’ adjusted operating income estimates.

Michael Doss, the Company's President and CEO said, "Against a backdrop of sluggish consumer volumes, we executed well in the quarter, reduced inventory, and saw our innovation engine open new markets for paperboard packaging. As food affordability challenges ease, the full power of our business model and its cash generating potential will become even more apparent.

Graphic Packaging Holding delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $15.66.

Is now the time to buy Graphic Packaging Holding? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $3.20 billion, up 4.2% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $97.90.

Is now the time to buy Crown Holdings? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest 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 $6.22 billion, up 32.8% year on year, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

International Paper delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 12.7% since the results and currently trades at $38.60.

Read our full analysis of International Paper’s results here.

Packaging Corporation of America (NYSE: PKG)

Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.

Packaging Corporation of America reported revenues of $2.31 billion, up 6% year on year. This result met analysts’ expectations. Zooming out, it was a softer quarter as it recorded a significant miss of analysts’ EPS estimates and EPS guidance for next quarter missing analysts’ expectations significantly.

The stock is down 1.8% since reporting and currently trades at $205.06.

Read our full, actionable report on Packaging Corporation of America here, it’s free for active Edge members.

Avery Dennison (NYSE: AVY)

Founded as Kum Kleen Products, Avery Dennison (NYSE: AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.

Avery Dennison reported revenues of $2.22 billion, up 1.5% year on year. This print was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.

The stock is up 11.7% since reporting and currently trades at $182.72.

Read our full, actionable report on Avery Dennison here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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