PK

Packaging Corporation of America stock research

Sep 30, 2024

FY2024 Q3

Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and cost of revenue both increased, but the rise in gross profit was proportionally larger, leading to an improvement in gross margin. Compared to the prior quarter and the same quarter last year, gross margin was higher.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue and cost of revenue both increased, but the rise in gross profit was proportionally larger, leading to an improvement in gross margin. Compared to the prior quarter and the same quarter last year, gross margin was higher.

  • The increase in gross profit exceeded the increase in revenue, which coincided with a higher gross margin.
  • Gross margin improved from both the immediately preceding quarter and the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

23.1%

Gross profit

$505.2M

Revenue

$2.2B

Cost of revenue

$1.7B

Quarter-over-quarter change

+2.1 pts

Year-over-year change

+1.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.9B$410.1M$1.5B21.2%
Mar 31, 2024$2.0B$370.4M$1.6B18.7%
Jun 30, 2024$2.1B$437.7M$1.6B21.1%
Sep 30, 2024$2.2B$505.2M$1.7B23.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

+2.1 pts

Year-over-year change

Sep 30, 2023

+1.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The increase in gross profit exceeded the increase in revenue, which coincided with a higher gross margin.

Gross margin improved from both the immediately preceding quarter and the same quarter one year earlier.

Monitor whether the growth in gross profit continues to outpace revenue growth.