Shares of Graphic Packaging Holding Co. (GPK) plummeted around 5.57% on October 29, 2024, after the company reported weaker-than-expected third-quarter results and lowered its full-year guidance, citing ongoing challenges in the consumer packaging market.

For the quarter ended September 30, 2024, Graphic Packaging's revenue declined 5.7% year-over-year to $2.22 billion, missing analysts' expectations of $2.28 billion. The company's adjusted earnings per share (EPS) came in at $0.64, falling short of the consensus estimate of $0.68 by a significant margin.

The revenue shortfall was primarily driven by the divestiture of the company's Augusta, Georgia bleached paperboard manufacturing facility, which impacted sales by $109 million. Additionally, lower packaging volumes and pricing pressures weighed on the top line, partially offset by growth in innovation sales.

Reflecting the weaker-than-anticipated performance, Graphic Packaging slashed its full-year 2024 adjusted EPS guidance to a range of $2.49 to $2.61, down from its previous outlook of $2.65 to $2.85. The company also lowered its adjusted EBITDA forecast to $1.68 billion to $1.72 billion, compared to the earlier range of $1.73 billion to $1.83 billion.

While analysts acknowledged the challenging conditions facing the consumer packaging industry, some expressed concerns over the extent of Graphic Packaging's guidance cut, particularly for earnings. However, management remained optimistic about the company's long-term growth prospects, driven by its focus on sustainable packaging innovations and operational excellence initiatives.