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Investing.com - Graphic Packaging Holding Company (NYSE:GPK) reported first quarter earnings that fell short of analyst expectations and lowered its full-year guidance, sending shares down 8.9% in early trading.
The sustainable consumer packaging company posted adjusted earnings per share of $0.51 for the first quarter, missing the analyst consensus of $0.59 by $0.08. Revenue came in at $2.12 billion, below estimates of $2.15 billion and down from $2.25 billion in the same quarter last year.
Graphic Packaging cited challenging economic conditions and changing consumer behavior as factors impacting results. The company saw packaging volumes decline 1% in Americas but increase 3% in International markets.
"First quarter results fell short of our expectations in a challenging economic and consumer environment," said Michael Doss, President and CEO. "Consumers are redoubling their efforts to find value as food prices continue to rise. Meanwhile, promotional activity is driving mix and brand switching, rather than incremental foot traffic and volume gains."
The company lowered its full-year 2025 outlook, now expecting adjusted earnings per share of $1.75 to $2.25, well below the previous analyst consensus of $2.50. Graphic Packaging attributed the reduced guidance to expectations of a 2% volume decline and $80 million in input cost inflation.
Despite near-term headwinds, Graphic Packaging announced a new $1.5 billion share repurchase authorization and remains on track with its Waco, Texas recycled paperboard investment, slated for startup in Q4 2025.
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