Packaging Corp of America beats Q1 EPS estimates but warns of margin pressure and lowers Q2 outlook.

Packaging Corporation of America reported strong Q1 results with earnings per share of $2.40, surpassing expectations, and revenue rising 11% to $2.4 billion. The company continues to gain market share but faces margin pressures due to high input and freight costs, as well as risks from ongoing energy inflation. For Q2, the company provided guidance of $2.33 EPS, which is below analyst consensus, citing planned maintenance and increased corporate expenses. Despite these challenges, underlying demand remains strong. Shares are near the analyst's $200 fair value estimate, leading to a maintained "Sell" rating due to cyclical margin risks and limited upside potential at current prices.