Industrial Packaging Stocks Q2 Highlights: Graphic Packaging Holding (NYSE:GPK)

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the industrial packaging industry, including Graphic Packaging Holding (NYSE:GPK) and its peers.

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 9 industrial packaging stocks we track reported a decent Q2. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 2.3% below.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, industrial packaging stocks have been resilient with share prices up 5.6% 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 $2.24 billion, down 6.5% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ operating margin estimates.

Michael Doss, the Company's President and CEO said, "Second quarter played out largely as expected, with continued strength in Foodservice and Beverage results, and strong execution driving solid Adjusted EBITDA."

Interestingly, the stock is up 6.8% since reporting and currently trades at $29.93.

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

Best Q2: 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 $2.24 billion, up 6.9% year on year, outperforming analysts’ expectations by 1.9%. It was a very strong quarter for the company with an impressive beat of analysts’ organic revenue and operating margin estimates.

Avery Dennison delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $221.85.

Is now the time to buy Avery Dennison? Access our full analysis of the earnings results here, it’s free.

Silgan Holdings (NYSE:SLGN)

Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Silgan Holdings reported revenues of $1.38 billion, down 3.2% year on year, falling short of analysts’ expectations by 3.4%. It was a weak quarter for the company with a miss of analysts’ organic revenue estimates.

Interestingly, the stock is up 7.2% since the results and currently trades at $52.27.

Read our full analysis of Silgan Holdings’s results here.

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 $3.04 billion, down 2.2% year on year, in line with analysts’ expectations. Zooming out, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.

The stock is up 16.7% since reporting and currently trades at $90.41.

Read our full, actionable report on Crown Holdings here, it’s free.

Sealed Air (NYSE:SEE)

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Sealed Air reported revenues of $1.35 billion, down 2.6% year on year, surpassing analysts’ expectations by 2.9%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin and volume estimates.

Sealed Air achieved the biggest analyst estimates beat among its peers. The stock is up 1.6% since reporting and currently trades at $34.95.

Read our full, actionable report on Sealed Air here, it’s free.

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