PKG - Packaging Corporation stock gains after profit beat

Packaging Corporation of America ( NYSE: PKG ) rallied after the manufacturing company topped profit estimates with its Q4 earnings report .

The company said it was able to offset the negative impact of lower demand in the packaging segment through cost management and process optimization efforts at mills and corrugated products plants.

Looking ahead, PKG said it expects box demand in the packaging segment on a per day basis to be similar to Q4 levels, although higher total volume is anticipated with corrugated plants having four additional shipping days. Prices are forecast to move lower as a result of the recent decreases in the published domestic containerboard prices. Export prices are also expected to be lower.

Wells Fargo said it believes the "good enough" Q1 guidance and share buybacks will support PKG's share price in the near term.

Shares of Packaging Corporation of America ( PKG ) rallied 6.09% in Thursday afternoon trading.

Read Seeking Alpha author Wolf Report's recent breakdown on Packaging Corporation.

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