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What's in Store for Crown Holdings (CCK) in Q1 Earnings?

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Crown Holdings, Inc. (CCK - Free Report) is scheduled to report first-quarter 2017 results, after market close on Apr 19.

In the last quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Nevertheless, the company surpassed estimates in three of the past four quarters, with an average positive surprise of 5%.

Let’s see how things are shaping up for this announcement.

Crown Holdings, Inc. Price and EPS Surprise

 

Crown Holdings, Inc. Price and EPS Surprise | Crown Holdings, Inc. Quote

Key Factors

Crown Holdings projects adjusted diluted earnings per share for the first quarter in the range of $0.65–$0.75 compared to $0.69 recorded in the prior year quarter. This estimate reflects the impact of the anticipated repurchase activity under the newly authorized share repurchase program. Moreover, the company is well poised to gain from its diligent efforts to build new facilities, expand its beverage can lines, and strategic acquisitions.

However, Crown Holdings’ food can business performance will be affected in the to-be-reported quarter due to seasonality. Higher start-up costs, weak global food and aerosol can volumes will also hurt results.

Share Price Performance

Year to date, Crown Holdings outperformed the Zacks classified Containers- Metal/ Glass sub-industry with respect to price performance. While the stock gained 2%, the industry incurred a loss of around 0.3% over the same time frame.



Earnings Whispers

Our proven model does not conclusively show that Crown Holdings is likely to beat on earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: The Earnings ESP for Crown Holdings is 0.00%. This is because the Most Accurate estimate of 70 cents is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Crown Holdings currently carries a Zacks Rank #3. Although this increases the predictive power of ESP, the company’s ESP of 0.00% makes an earnings prediction uncertain.

It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few stocks which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:

Deere & Company (DE - Free Report) has an Earnings ESP of +5.03% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Altra Industrial Motion Corp. has an Earnings ESP of +5.00% and a Zacks Rank #2.

Parker-Hannifin Corp. (PH - Free Report) has an Earnings ESP of +2.16% and a Zacks Rank #2.

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