Pactiv Soars As 1Q Earns, Outlooks Top Estimates

NEW YORK (AP) — Shares of packaging maker Pactiv Corp. soared Thursday after its first-quarter earnings trounced Wall Street expectations and it raised its full-year earnings above analyst estimates.

The increased guidance came as the Lake Forest, Ill., company reported Wednesday after the market closed that its first-quarter profit nearly tripled as lower production costs and growth in cups and cutlery sales helped offset weaker Hefty trashbags and disposable plate sales.

Its per-share profit of 69 cents came in 23 cents ahead of the Street's target of 46 cents per share.

Deutsche Bank analyst Mark Wilde called the first-quarter results a "big upside surprise."

Besides its first-quarter report, Pactiv forecast second-quarter earnings of 54 cents per share to 58 cents per share. Analysts polled by Thomson Reuters expect, on average, 52 cents per share.

The company also raised its full-year 2009 earnings per share outlook to between $2.15 and $2.25 from prior estimates of $1.80 to $2.00. Analysts expect full-year earnings of $1.89 per share.