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Silgan (SLGN) Q4 Earnings Top Estimates, Sales Rise Y/Y
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Silgan Holdings Inc. (SLGN - Free Report) reported adjusted earnings of 84 cents per share in fourth-quarter 2022, beating the Zacks Consensus Estimate of 81 cents per share. The bottom line increased 6% year over year.
Including one-time items, earnings were 22 cents per share compared with 76 cents per share reported in the prior-year quarter.
Total revenues increased year over year to $1,455 million from the prior-year quarter’s $1,439 million. The top line missed the Zacks Consensus Estimate of $1,547 million. The upside was driven by the pass-through of higher raw material and other manufacturing costs; improved unit volumes across the Dispensing and Specialty Closures, and Metal Container segments, and a favorable mix of products sold in the Metal Container and Custom Container segments. These were partly offset by lower volumes across all segments and the unfavorable impacts of foreign currency translation.
Costs and Margins
In fourth-quarter 2022, the cost of goods sold decreased 0.2% year over year to $1,223 million. The gross profit increased 7.3% to $233 million. The gross margin was 16% compared with the prior-year quarter’s 15%.
Selling, general and administrative expenses were $96.5 million in the reported quarter compared with the year-ago quarter’s $96 million. The company reported an operating income of $81 million in the quarter compared with $128 million in the prior-year quarter. The operating margin was 5.6% in the reported quarter compared with the prior-year quarter’s 8.9%.
Silgan Holdings Inc. Price, Consensus and EPS Surprise
Revenues in the Dispensing and Specialty Closures segment were down 5.4% year over year to $541 million in the fourth quarter. The segment’s operating income was $65 million compared with $63 million in the prior-year period.
The Metal Containers segment’s revenues in the fourth quarter increased 9.8% year over year to $755 million. Operating income in the segment amounted to $8 million, a decline of 84% from the prior-year quarter.
In the Custom Containers segment, revenues were $160 million compared with the year-ago quarter’s $180 million. The segment reported an income of $13 million, down from the previous year’s $18 million.
Financial Updates
The company had cash and cash equivalents of $586 million at the end of 2022 compared with $631.4 million at the end of 2021. It generated around $748 million in cash from operating activities in 2022 compared with $557 million in 2021.
2022 Performance
Silgan reported record adjusted earnings per share (EPS) of $3.98 for 2022 compared with $3.40 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $3.95. Including one-time items, the bottom line was $3.07, down 4.9% from the $3.23 reported in 2021.
Sales were up 12.9% to a record $6.4 billion from the prior-year figure of $5.7 billion. The top line was in line with the Zacks Consensus Estimate.
Revenues in the Dispensing and Specialty Closures segment reached $2.32 billion in 2022, up 7.2% from the 2021 level. Revenues of the Metal Containers segment were a record $3.37 billion for 2022, a 20.1% increase from 2021. Net sales of the Custom Containers segment increased 2% to $723 million in 2022.
2023 Outlook
Silgan expects 2023 adjusted EPS between $3.95 and $4.15, including a headwind of 20 cents per share for additional interest expenses.
For first-quarter 2023, Silgan anticipates adjusted EPS of 75-85 cents, whereas it reported 79 cents in first-quarter 2022.
Price Performance
Silgan’s shares have gained 20.5% in the past year against the industry’s fall of 22.5%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Silgan currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. , O-I Glass, Inc. (OI - Free Report) , and Deere & Company (DE - Free Report) . KNBE and OI flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 17% in a year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 45.6% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 12% in the last year.
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Silgan (SLGN) Q4 Earnings Top Estimates, Sales Rise Y/Y
Silgan Holdings Inc. (SLGN - Free Report) reported adjusted earnings of 84 cents per share in fourth-quarter 2022, beating the Zacks Consensus Estimate of 81 cents per share. The bottom line increased 6% year over year.
Including one-time items, earnings were 22 cents per share compared with 76 cents per share reported in the prior-year quarter.
Total revenues increased year over year to $1,455 million from the prior-year quarter’s $1,439 million. The top line missed the Zacks Consensus Estimate of $1,547 million. The upside was driven by the pass-through of higher raw material and other manufacturing costs; improved unit volumes across the Dispensing and Specialty Closures, and Metal Container segments, and a favorable mix of products sold in the Metal Container and Custom Container segments. These were partly offset by lower volumes across all segments and the unfavorable impacts of foreign currency translation.
Costs and Margins
In fourth-quarter 2022, the cost of goods sold decreased 0.2% year over year to $1,223 million. The gross profit increased 7.3% to $233 million. The gross margin was 16% compared with the prior-year quarter’s 15%.
Selling, general and administrative expenses were $96.5 million in the reported quarter compared with the year-ago quarter’s $96 million. The company reported an operating income of $81 million in the quarter compared with $128 million in the prior-year quarter. The operating margin was 5.6% in the reported quarter compared with the prior-year quarter’s 8.9%.
Silgan Holdings Inc. Price, Consensus and EPS Surprise
Silgan Holdings Inc. price-consensus-eps-surprise-chart | Silgan Holdings Inc. Quote
Segmental Performance
Revenues in the Dispensing and Specialty Closures segment were down 5.4% year over year to $541 million in the fourth quarter. The segment’s operating income was $65 million compared with $63 million in the prior-year period.
The Metal Containers segment’s revenues in the fourth quarter increased 9.8% year over year to $755 million. Operating income in the segment amounted to $8 million, a decline of 84% from the prior-year quarter.
In the Custom Containers segment, revenues were $160 million compared with the year-ago quarter’s $180 million. The segment reported an income of $13 million, down from the previous year’s $18 million.
Financial Updates
The company had cash and cash equivalents of $586 million at the end of 2022 compared with $631.4 million at the end of 2021. It generated around $748 million in cash from operating activities in 2022 compared with $557 million in 2021.
2022 Performance
Silgan reported record adjusted earnings per share (EPS) of $3.98 for 2022 compared with $3.40 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $3.95. Including one-time items, the bottom line was $3.07, down 4.9% from the $3.23 reported in 2021.
Sales were up 12.9% to a record $6.4 billion from the prior-year figure of $5.7 billion. The top line was in line with the Zacks Consensus Estimate.
Revenues in the Dispensing and Specialty Closures segment reached $2.32 billion in 2022, up 7.2% from the 2021 level. Revenues of the Metal Containers segment were a record $3.37 billion for 2022, a 20.1% increase from 2021. Net sales of the Custom Containers segment increased 2% to $723 million in 2022.
2023 Outlook
Silgan expects 2023 adjusted EPS between $3.95 and $4.15, including a headwind of 20 cents per share for additional interest expenses.
For first-quarter 2023, Silgan anticipates adjusted EPS of 75-85 cents, whereas it reported 79 cents in first-quarter 2022.
Price Performance
Silgan’s shares have gained 20.5% in the past year against the industry’s fall of 22.5%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Silgan currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. , O-I Glass, Inc. (OI - Free Report) , and Deere & Company (DE - Free Report) . KNBE and OI flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 17% in a year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 45.6% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.86, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 12% in the last year.