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Silgan Holdings Inc. (SLGN - Free Report) reported adjusted earnings of 88 cents per share in second-quarter 2024, which beat the Zacks Consensus Estimate of adjusted earnings of 87 cents. The bottom line improved 6% year over year and was within the company’s guidance of 82-92 cents.
Including one-time items, earnings were 71 cents per share, flat with the prior-year quarter.
Total revenues decreased 3.2% year over year to $1.38 billion. The top line missed the Zacks Consensus Estimate of $1.43 billion. The downside was driven by contractual pass-through of lower raw material costs.
Silgan Holdings Inc. Price, Consensus and EPS Surprise
In second-quarter 2024, the cost of goods sold decreased 4.4% year over year to $1.13 billion. The gross profit increased 2.4% to $256 million. The gross margin was 18.5% compared with the prior-year quarter’s 17.5%.
Selling, general and administrative expenses were $108 million in the reported quarter compared with the year-ago quarter’s $102 million. The company reported an operating income of $142 million in the quarter compared with $144 million in the prior-year quarter.
Adjusted operating profit was $165 million in the second quarter of 2024, which was 2.8% higher than $161 million in the prior-year quarter. The adjusted operating margin was 12% in the reported quarter compared with the prior-year quarter’s 11.3%.
Segmental Performances
Revenues in the Dispensing and Specialty Closures segment were up 1% year over year to $565 million in the second quarter. The upside was driven by higher volume and mix, as well as a double-digit improvement in dispensing products. The gains were offset by lower prices and unfavorable foreign currency translation. The adjusted operating income for the segment was $93 million compared with $77 million in second-quarter 2023.
The Metal Containers segment’s revenues declined 8% year over year to $651 million due to lower price and mix, partially offset by higher volume. The segment’s adjusted operating income was $58.5 million, a 22.7% decline from the prior-year quarter’s $76 million.
In the Custom Containers segment, revenues were $165 million compared with the year-ago quarter’s $156 million. The increase was driven by higher volumes. The segment reported an adjusted operating income of $22.5 million, up from the previous-year quarter’s $18.5 million.
Cash Flow & Cash Position
The company had cash and cash equivalents of $303 million at the end of the second quarter of 2024 compared with $643 million at the end of 2023. The company used around $527 million in cash from operating activities in the first six months of 2024 compared with an outflow of $812 million in last year’s comparable period.
2024 Outlook
Silgan expects 2024 adjusted earnings per share (EPS) between $3.55 and $3.75. Volumes in all segments are expected to improve from the 2023 reported levels. The company had recorded an adjusted EPS of $3.40 in 2023.
For third-quarter 2024, SLGN anticipates an adjusted EPS of $1.20-$1.30.
Price Performance
Silgan’s shares have gained 11.2% in the past year compared with the industry’s 10.4% growth.
Ball Corporation (BALL - Free Report) reported second-quarter 2024 adjusted EPS of 74 cents, which beat the Zacks Consensus Estimate of 73 cents. The bottom line improved 21% year over year.
Total sales were $2.96 billion compared with $3.07 billion (the figure is exclusive of the company's former aerospace business) in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.07 billion. Results reflect the contractual pass-through of lower aluminum costs, partially offset by higher volumes in North and Central America, and EMEA.
Crown Holdings, Inc. (CCK - Free Report) posted second-quarter adjusted EPS of $1.81, which beat 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.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the 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 of the impacts.
O-I Glass, Inc. (OI - Free Report) reported second-quarter adjusted EPS of 44 cents, which beat the Zacks Consensus Estimate of 42 cents. On a year-over-year basis, earnings fell 50%, reflecting lower demand.
Revenues were $1.73 billion, down 8.5% from the year-ago quarter mainly due to lower average selling prices, unfavorable foreign currency translation and decreased sales volume. The top line missed the consensus estimate of $1.75 billion. Sales volume (in tons) declined 4.5%.
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Silgan (SLGN) Q2 Earnings Beat Estimates, Revenues Dip Y/Y
Silgan Holdings Inc. (SLGN - Free Report) reported adjusted earnings of 88 cents per share in second-quarter 2024, which beat the Zacks Consensus Estimate of adjusted earnings of 87 cents. The bottom line improved 6% year over year and was within the company’s guidance of 82-92 cents.
Including one-time items, earnings were 71 cents per share, flat with the prior-year quarter.
Total revenues decreased 3.2% year over year to $1.38 billion. The top line missed the Zacks Consensus Estimate of $1.43 billion. The downside was driven by contractual pass-through of lower raw material costs.
Silgan Holdings Inc. Price, Consensus and EPS Surprise
Silgan Holdings Inc. price-consensus-eps-surprise-chart | Silgan Holdings Inc. Quote
Costs & Margins
In second-quarter 2024, the cost of goods sold decreased 4.4% year over year to $1.13 billion. The gross profit increased 2.4% to $256 million. The gross margin was 18.5% compared with the prior-year quarter’s 17.5%.
Selling, general and administrative expenses were $108 million in the reported quarter compared with the year-ago quarter’s $102 million. The company reported an operating income of $142 million in the quarter compared with $144 million in the prior-year quarter.
Adjusted operating profit was $165 million in the second quarter of 2024, which was 2.8% higher than $161 million in the prior-year quarter. The adjusted operating margin was 12% in the reported quarter compared with the prior-year quarter’s 11.3%.
Segmental Performances
Revenues in the Dispensing and Specialty Closures segment were up 1% year over year to $565 million in the second quarter. The upside was driven by higher volume and mix, as well as a double-digit improvement in dispensing products. The gains were offset by lower prices and unfavorable foreign currency translation. The adjusted operating income for the segment was $93 million compared with $77 million in second-quarter 2023.
The Metal Containers segment’s revenues declined 8% year over year to $651 million due to lower price and mix, partially offset by higher volume. The segment’s adjusted operating income was $58.5 million, a 22.7% decline from the prior-year quarter’s $76 million.
In the Custom Containers segment, revenues were $165 million compared with the year-ago quarter’s $156 million. The increase was driven by higher volumes. The segment reported an adjusted operating income of $22.5 million, up from the previous-year quarter’s $18.5 million.
Cash Flow & Cash Position
The company had cash and cash equivalents of $303 million at the end of the second quarter of 2024 compared with $643 million at the end of 2023. The company used around $527 million in cash from operating activities in the first six months of 2024 compared with an outflow of $812 million in last year’s comparable period.
2024 Outlook
Silgan expects 2024 adjusted earnings per share (EPS) between $3.55 and $3.75. Volumes in all segments are expected to improve from the 2023 reported levels. The company had recorded an adjusted EPS of $3.40 in 2023.
For third-quarter 2024, SLGN anticipates an adjusted EPS of $1.20-$1.30.
Price Performance
Silgan’s shares have gained 11.2% in the past year compared with the industry’s 10.4% growth.
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Zacks Rank
SLGN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did SLGN’s Industry Peers Fare in Q2?
Ball Corporation (BALL - Free Report) reported second-quarter 2024 adjusted EPS of 74 cents, which beat the Zacks Consensus Estimate of 73 cents. The bottom line improved 21% year over year.
Total sales were $2.96 billion compared with $3.07 billion (the figure is exclusive of the company's former aerospace business) in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.07 billion. Results reflect the contractual pass-through of lower aluminum costs, partially offset by higher volumes in North and Central America, and EMEA.
Crown Holdings, Inc. (CCK - Free Report) posted second-quarter adjusted EPS of $1.81, which beat 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.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the 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 of the impacts.
O-I Glass, Inc. (OI - Free Report) reported second-quarter adjusted EPS of 44 cents, which beat the Zacks Consensus Estimate of 42 cents. On a year-over-year basis, earnings fell 50%, reflecting lower demand.
Revenues were $1.73 billion, down 8.5% from the year-ago quarter mainly due to lower average selling prices, unfavorable foreign currency translation and decreased sales volume. The top line missed the consensus estimate of $1.75 billion. Sales volume (in tons) declined 4.5%.