Packaging Corporation of America stock research
FY2024 Q4
Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue remained stable, resulting in a lower gross margin. Versus the same quarter one year earlier, revenue and gross profit increased, cost of revenue was higher, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue remained stable, resulting in a lower gross margin. Versus the same quarter one year earlier, revenue and gross profit increased, cost of revenue was higher, and gross margin improved.
- The gross margin weakened sequentially as gross profit declined while cost of revenue held steady. The year-over-year improvement in gross margin was driven by a proportionally larger increase in gross profit relative to the rise in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was similar, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.9%
Gross profit
$469.7M
Revenue
$2.1B
Cost of revenue
$1.7B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $2.0B | $370.4M | $1.6B | 18.7% |
| Jun 30, 2024 | $2.1B | $437.7M | $1.6B | 21.1% |
| Sep 30, 2024 | $2.2B | $505.2M | $1.7B | 23.1% |
| Dec 31, 2024 | $2.1B | $469.7M | $1.7B | 21.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.3 pts
Year-over-year change
Dec 31, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as gross profit declined while cost of revenue held steady. The year-over-year improvement in gross margin was driven by a proportionally larger increase in gross profit relative to the rise in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was similar, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the relationship between cost of revenue and revenue in future quarters, as cost of revenue remained unchanged sequentially despite lower revenue.