Earnings

Stock Earnings to Watch: Graphic Packaging Holding Company (NYSE:GPK)

Graphic Packaging Holding Company (NYSE:GPK) on July 26, 2016 reported Net Income for second quarter 2016 of $77.8 million, or $0.24 per share, based upon 322.5 million weighted average diluted shares.  This compares to second quarter 2015 Net Income of $57.6 million, or $0.17 per share, based on 330.9 million weighted average diluted shares.

Second quarter 2016 Net Income was positively impacted by a discrete tax benefit of $22.4 million which was partially offset by $4.7 million (net of a $2.4 million tax benefit) of business combinations and other special charges. When adjusting for these charges, Adjusted Net Income for the second quarter of 2016 was $60.1 million, or $0.19 per diluted share. This compares to second quarter 2015 Adjusted Net Income of $61.3 million or $0.19 per diluted share.

Operating Results

Net Sales

Net Sales increased 4.4% to $1,103.2 million in the second quarter of 2016, compared to $1,057.1 million in the prior year period.  The $46.1 million increase was driven by $60.9 million of improved volume/mix, primarily related to acquisitions.  The net sales increase was partially offset by $8.2 million of unfavorable foreign exchange rates and $6.6 million of lower pricing.

Other Results

Total Debt (Long-Term, Short-Term and Current Portion) decreased $27.1 million during the second quarter of 2016 to $2,287.0 million. Total Net Debt (Total Debt less Cash and Cash Equivalents) increased $9.8 million during the second quarter of 2016 to $2,248.3 million.  At quarter end, the Company’s Net Leverage Ratio was unchanged at 2.93 times Adjusted EBITDA compared to the end of the first quarter of 2016.  The slight increase in Total Net Debt in the second quarter of 2016 was driven by capital spending, the Colorpak acquisition, share repurchases and the quarterly dividend payment.

Shares of Graphic Packaging Holding Company (NYSE:GPK) jumped 4.35% to reach at $13.68 during the course of session. The company has experienced volume of 7.10M shares while on average the company has a capacity of trading 3.36M shares. The stock holds the market capitalization of $4.44B along with 320.023M outstanding shares. The stock traded in the price range of $13.15 – $13.89 for the last trading session. For the stock price target value has been calculated at $15.29 based on calls of 10 experts. Stock’s minimum price target estimates has been figured out at $14.00 while the maximum price target forecast is established at $15.29.

As of current trade, Graphic Packaging Holding Company (NYSE:GPK) has shown weekly upbeat performance of 5.23%. Its six months performance indicated a bullish movement while its yearly performance reflected a negative trend of -3.08%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 7.46%. Shares of Graphic Packaging Holding Company (NYSE:GPK) currently have an ABR of 1.00, derived from a total of 5 opinions. The company’s price sits 5.24% above from its 50-day moving average of $12.89 and 6.78% above from the stock’s 200-day moving average of $12.66. The company has Relative Strength Index (RSI 14) of 66.16 along with Average True Range (ATR 14) of 0.29. Its weekly and monthly volatility is 2.39%, 2.28% respectively. The company’s beta value is at 1.62.

Graphic Packaging Holding Company (NYSE:GPK)’s price to sales ratio for trailing twelve months is 1.06 and price to book ratio for most recent quarter is 4.02, whereas price to cash per share for the most recent quarter is 58.58. Graphic Packaging Holding Company (NYSE:GPK)’s price to free cash flow for trailing twelve months is 16.53. Its quick ratio for most recent quarter is 0.90 along with current ratio for most recent quarter of 1.80. Total debt to equity ratio of the company for most recent quarter is 2.09 whereas long term debt to equity ratio for most recent quarter is 2.06. Graphic Packaging Holding Company (NYSE:GPK) has a Return on Assets of 5.20%. The company currently has a Return on Equity of 21.20% and Return on Investment of 10.00%.

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