GPK - Graphic Packaging gains after strong pricing leads to earnings topper

2023-05-02 07:01:24 ET

Graphic Packaging Holding Company ( NYSE: GPK ) traded higher on Tuesday after topping Q1 earnings estimates and issuing strong guidance.

Revenue increased 9% to $2.44B in the quarter. The increase was driven by $236M of positive pricing, partially offset by $4M of unfavorable volume/mix and $39Mof foreign exchange impact. EBITDA was $484M vs. $134M a year ago, positively impacted by $236M from pricing and $10M from net performance.

Capital expenditures for the quarter of 2023 were $196M, which marked a drop from the $223M in capex from a year ago.

"Significant investments in our business continue to result in quality and production cost advantages. During the quarter our newest coated recycled paperboard machine in Kalamazoo exceeded quality, yield and financial expectations. We also began construction on the recently announced state-of-the-art mill in Waco, Texas to further advance our leadership in fiber-based consumer packaging."

Shares of Graphic Packaging ( GPK ) tracked 3.33% higher in premarket trading to $25.45.

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