Graphic Packaging Slashes FY23 Sales Outlook Amid Inventory Normalization & Fluctuations In Consumer Purchasing Behavior
Portfolio Pulse from Lekha Gupta
Graphic Packaging Holding Co (GPK) reported a Q3 FY23 revenue decrease of 4% Y/Y to $2.349 billion, missing the consensus of $2.469 billion. The company also cut its FY23 sales outlook due to inventory normalization and fluctuations in consumer purchasing behavior. Despite this, GPK's adjusted EBITDA rose 9% Y/Y to $482 million and adjusted EPS increased 10% Y/Y to $0.74, beating the consensus of $0.71. The company returned $39 million to stockholders in Q3 and closed the acquisition of Bell Incorporated.
October 31, 2023 | 12:41 pm
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Graphic Packaging's Q3 revenue fell short of expectations and the company cut its FY23 sales outlook. However, adjusted EBITDA and EPS beat consensus, and the company returned $39 million to stockholders in Q3.
While Graphic Packaging's Q3 revenue fell short of expectations and the company cut its FY23 sales outlook, the company's adjusted EBITDA and EPS beat consensus. This mixed result could lead to uncertainty in the market, potentially keeping the stock price stable in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100