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Amcor (AMCR) to Report Q2 Earnings: What's in the Offing?

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Amcor Plc (AMCR - Free Report) is scheduled to report second-quarter fiscal 2023 results on Feb 7, after the closing bell.

Q2 Estimates

The Zacks Consensus Estimate for the fiscal second-quarter revenues is pegged at $3.64 billion, indicating growth of 3.7% from the prior-year quarter’s figure. The consensus mark for quarterly earnings currently stands at 18 cents, in line with the prior-year quarter. The estimate has remained unchanged over the past 30 days.

Q1 Results

Amcor’s first quarter fiscal 2023 earnings were flat year over year despite higher revenues. While revenues beat the Zacks Consensus Estimate, earnings missed the same. The company has a trailing four-quarter negative earnings surprise of 0.07%, on average.

Amcor PLC Price and EPS Surprise

 

Amcor PLC Price and EPS Surprise

Amcor PLC price-eps-surprise | Amcor PLC Quote

 

Key Factors to Note

Amcor’s Rigid Packaging and Flexible Packaging segments had been performing well in the past few quarters through a combination of organic growth and disciplined cost control. The Flexibles segment witnessed growth in medical, condiments, liquid beverage and confectionary end markets.

In the Rigid packaging segment, hot-fill container volumes have been strong in the past few quarters in North America. In specialty containers, volume growth has been noted in healthcare, dairy and nutrition end markets. The segment has been seeing volume growth in isotonic, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Brand extensions and the introduction of new health and wellness-oriented products in PET containers have been supporting growth. However, the current inflationary scenario has weighed on consumer spending lately and might have thwarted volume levels for Amcor. This will likely reflect in its second-quarter results.

Amcor’s acquisition of Bemis Company in June 2019 expanded its global footprint, opened up new attractive end markets and customers for the company’s products, and greater economies of scale, thus driving efficiencies and higher margins. The integration has been essentially completed and the buyout is expected to expand the Flexible segment’s margins.

However, this benefit might have been offset by higher raw material, chemical labor and transportation costs. The company has been witnessing raw material price volatility due to supply shortages of certain resins and raw materials, which might have marred the to-be-reported quarter’s margin’s performance. Also, higher interest expenses are also expected to hurt margins.

What the Zacks Model Indicates

Our proven model doesn’t conclusively predict an earnings beat for Amcor this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Amcor is 0.00%.

Zacks Rank: Amcor currently carries a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Over the past year, shares of Amcor have gained 3.7% against the industry’s 2.8% rise.

Stocks Poised to Beat Earnings Estimates

Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Allegion plc (ALLE - Free Report) currently has an Earnings ESP of +4.19% and a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $1.37 per share. This suggests year-over-year growth of 23.4%.

The Zacks Consensus Estimate for ALLE’s quarterly revenues is pegged at $849 million, indicating year-over-year growth of 19.7%. ALLE has a trailing four-quarter earnings surprise of 8.8%, on average.

Deere & Co. (DE - Free Report) currently has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has remained constant in the past 30 days and is currently pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.

The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.

The Middleby Corporation (MIDD - Free Report) currently has an Earnings ESP of +2.20% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has remained unchanged in the past 30 days and is pegged at $2.46 per share. This suggests year-over-year growth of 16.6%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, indicating growth of 16.8% from the prior-year quarter’s reported level.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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