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Crown Holdings (CCK) Beats on Q2 Earnings, Raises '24 View

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Crown Holdings, Inc. (CCK - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $1.81, beating the Zacks Consensus Estimate of $1.59. The bottom line exceeded the company’s EPS guidance of $1.55-$1.65. It improved 8% year over year.

Including one-time items, the company reported earnings of $1.45 per share in the quarter under review compared with $1.31 in second-quarter 2023.

Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion. The downside was caused by lower volumes across most businesses and unfavorable foreign currency translation. Higher beverage can shipments in the Americas Beverage segment offset some impacts.

Crown Holdings, Inc. Price, Consensus and EPS Surprise

 

Crown Holdings, Inc. Price, Consensus and EPS Surprise

Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote

Costs & Margins

The cost of products sold fell 3.4% year over year to $2.38 billion. On a year-over-year basis, gross profit moved up 2.3% to $661 million. The gross margin improved to 21.7% from the year-ago quarter’s 20.8%.

Selling and administrative expenses rose 1.4% year over year to $150 million. Segmental operating income was $437 million compared with the prior-year quarter’s $414 million. The upside was driven by increased global beverage operations.

Segment Performances

Net sales in the Americas Beverage segment totaled $1.33 billion, up 2.6% year over year. Segmental operating profit increased 15.2% year over year to $243 million. 

The European Beverage segment’s sales rose 5.3% year over year to $560 million. Operating income was $88 million compared with the year-ago quarter’s $69 million.

The Asia-Pacific segment’s revenues totaled $290 million, down 12.7% year over year. Operating profit was $55 million compared with the prior-year quarter’s $38 million.

Revenues in the Transit Packaging segment totaled $550 million compared with the year-ago quarter’s $597 million. Operating profit fell 18% year over year to $73 million.

Cash Flow & Balance Sheet Updates

Crown Holdings had cash and cash equivalents of $1.41 billion at the second-quarter 2024 end, up from $0.55 billion at the end of the prior-year quarter. The company generated $343 million of cash in operating activities in the first half of 2024 compared with $293 million in the year-ago comparable period.

Crown Holdings’ long-term debt decreased to $5.95 billion as of Jun 30, 2024, from $6.99 billion as of Jun 30, 2023.

Outlook

Crown Holdings projects third-quarter 2024 adjusted EPS between $1.75 and $1.85.

Backed by a better-than-expected performance in the first half, the company raised its yearly outlook. It projects full-year adjusted EPS of $6.00-$6.25, up from the prior stated $5.80-$6.20.

Price Performance

Crown Holdings’ shares have lost 13.4% in the past year compared with the industry’s fall of 1.1%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank

Crown Holdings currently carries a Zacks Rank #4 (Sell).

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

Containers Stocks Awaiting Results

Silgan Holdings Inc. (SLGN - Free Report) is scheduled to release its second-quarter 2024 on Jul 31. The Zacks Consensus Estimate for SLGN’s second-quarter 2024 earnings is pegged at 87 cents per share, suggesting year-over-year growth of 4.8%. 

The Zacks Consensus Estimate for the company’s top line is pegged at $1.43 billion, suggesting an increase of 0.3% from the prior-year figure. SLGN has a trailing four-quarter average surprise of 1.1%.

Ball Corporation (BALL - Free Report) is scheduled to release its second-quarter 2024 on Aug 1. The Zacks Consensus Estimate for BALL’s second-quarter 2024 earnings is pegged at 73 cents per share, suggesting year-over-year growth of 19.7%.

The Zacks Consensus Estimate for the company’s top line is pegged at $3.07 billion, suggesting a decline of 13.8% from the prior-year figure. BALL has a trailing four-quarter average surprise of 6.8%.

AptarGroup, Inc. (ATR - Free Report)   is scheduled to release its second-quarter 2024 on Jul 25. The Zacks Consensus Estimate for AptarGroup’s second-quarter 2024 earnings is pegged at $1.36 per share, suggesting year-over-year growth of 10.6%. 

The Zacks Consensus Estimate for the company’s top line is pegged at $925.4 million, suggesting growth of 3.3% from the prior-year figure. ATR has a trailing four-quarter average surprise of 9.3%.

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