Pactiv Evergreen Inc Up 21.34% To $10.35 After Earnings Beat

Thursday, November 2, 2023 - Pactiv Evergreen Inc (PTVE) reported upside earnings and downside revenues.

Pactiv Evergreen Inc's earnings came in at an EPS of $0.32 per share, 60.00% higher than estimates for an EPS of $0.2 per share. The firm's earnings are down 67% since reporting $0.98 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Pactiv Evergreen Inc revenue averaged out to $1.4 billion, with the business missing on those expectations with reported third-quarter revenue of $1.4 billion. The $11 million (1%) negative revenue surprise led to negative 14% growth year-over-year as the firm reported revenue of $1.6 billion in its year-ago quarter. The lower earnings growth compared to revenue points to Pactiv Evergreen Inc not being able to improve its profit margin.

The stock is up 21.34% to $10.35 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 35. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Pactiv Evergreen Inc is engaged in the business of manufacturing and distributing fresh foodservice and food merchandising products and fresh beverage cartons. It operates in three segments: Foodservice, Food Merchandising, and Beverage Merchandising. These segments manufacture a broad range of products such as food containers, drinkware, tableware, service ware, ready-to-eat food containers, clear rigid-display containers, trays for meat and poultry, molded fiber egg cartons, printed cartons, spouts & filling machines, and other products. The company's geographical segments are the United States, the Rest of North America, and Others, of which the vast majority of its revenue comes from the United States.