KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comPackaging Corp. of America falls after Q4 outlook

Packaging Corp. of America falls after Q4 outlook

NEW YORK (AP) - Packaging Corp. of America fell Tuesday after the cardboard box material maker forecast fourth-quarter earnings below Wall Street expectations because of lower volumes and selling prices.

The company said late Monday it expects to earn 13 cents per share during the fourth quarter.

It forecast reduced volume because of three fewer shipping days and normal seasonality, along with lower containerboard prices, higher wood costs and increased energy usage due to colder, wetter weather.

Box makers' revenues typically increase before the fourth-quarter as retailers boost orders in preparation for the holiday sales increase.

Analysts surveyed by Thomson Reuters expected 17 cents per share, on average, for the fourth quarter.

Sterne Agee analyst Mark Connelly, who has a "Neutral" rating on the stock, said the company's fourth-quarter estimate was "substantially less than our 19 cents" estimate.

But Deutsche Bank analyst Mark Wilde said Wall Street "frequently underestimates Packaging Corp. of America's fourth-quarter seasonal drop-off."

In morning trading, the stock fell 59 cents, or 2.7 percent, to $21.07.

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