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Crown Holdings' (CCK) Earnings & Sales Top Estimates in Q1
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Crown Holdings, Inc. (CCK - Free Report) reported first-quarter 2020 adjusted earnings per share of $1.13, which surpassed the Zacks Consensus Estimate of 93 cents. The bottom-line figure also improved 7.6% year over year.
Including one-time items, earnings per share declined 15.6% year over year to 65 cents in the reported quarter.
Net sales in the quarter came in at $2,757 million, up from the year-ago quarter’s $2,755 million. The reported figure also outpaced the Zacks Consensus Estimate of $2,752 million.
Cost and Margins
Cost of products sold was up 0.5% year over year to $2,220 million. On a year-over-year basis, gross profit edged down 1.5% to $537 million. Gross margin contracted to 19.5% from the year-ago quarter’s 19.8%.
Selling and administrative expenses flared up 3.2% year over year to $162 million. Segment operating income declined 5.4% year over year to $298 million during the first quarter. Operating margin came in at 10.8% compared with 11.4% recorded in the prior-year quarter.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Net sales in the Americas Beverage segment came in at $871 million, up 10.5% from the prior-year quarter’s tally of $788 million. Segment operating profit improved 18.6% year over year to $134 million.
The European Beverage segment’s sales went up 2.1% year over year to $346 million. Operating income came in at $39 million, flat year on year.
Revenues in the European Food segment fell 5% year over year to $402 million. Segment operating profit plunged 31.3% year over year to $33 million.
The Asia-Pacific segment’s revenues declined 6.2% year over year to $301 million. Operating profit was $45 million, flat year over year.
Revenues in the Transit Packaging segment totaled $522 million compared with the $569 million recorded in the year-ago period. Operating profit declined 9.6% year over year to $66 million.
Financial Update
Crown Holdings had cash and cash equivalents of $765 million at the end of the reported quarter compared with the year-earlier quarter’s $301 million. The company utilized $607 million cash in operating activities during the March-end quarter compared with the prior-year quarter figure of $666 million.
As of the quarter’s end, Crown Holdings’ long-term debt decreased to $8,631 million from $8,814 million as of end of the prior year.
Outlook
Crown Holdings has revoked its current-year guidance due to the uncertainty of the impact and duration of the coronavirus pandemic. In response to the virus outbreak, the company has imposed travel restrictions and measures to protect the health and ensure safety of its employees.
The company’s products are significant part of food and beverage supply chains, and also provide critical support to the transportation industry. It is focused on ensuring its manufacturing facilities across the globe remain operational while continuing to meet the evolving customer demand by delivering high quality products.
Crown Holdings remains on track to meet the future global growth of beverage-can demand. Also, it is committed to implement the previously-announced capacity-expansion projects with its strong liquidity position and sound capital structure.
Share Price Performance
Crown Holdings, along with Silgan Holdings Inc. (SLGN - Free Report) and Ball Corporation , is part of the Containers – Metal and Glass industry. Crown Holdings’ shares have gained 6.2% over the past year compared with the industry’s growth of 13.4%.
Zacks Rank and A Stock to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Sharps Compliance has an estimated earnings growth rate of a whopping 800% for 2020. In a year, the company’s shares have soared 114%.
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Crown Holdings' (CCK) Earnings & Sales Top Estimates in Q1
Crown Holdings, Inc. (CCK - Free Report) reported first-quarter 2020 adjusted earnings per share of $1.13, which surpassed the Zacks Consensus Estimate of 93 cents. The bottom-line figure also improved 7.6% year over year.
Including one-time items, earnings per share declined 15.6% year over year to 65 cents in the reported quarter.
Net sales in the quarter came in at $2,757 million, up from the year-ago quarter’s $2,755 million. The reported figure also outpaced the Zacks Consensus Estimate of $2,752 million.
Cost and Margins
Cost of products sold was up 0.5% year over year to $2,220 million. On a year-over-year basis, gross profit edged down 1.5% to $537 million. Gross margin contracted to 19.5% from the year-ago quarter’s 19.8%.
Selling and administrative expenses flared up 3.2% year over year to $162 million. Segment operating income declined 5.4% year over year to $298 million during the first quarter. Operating margin came in at 10.8% compared with 11.4% recorded in the prior-year quarter.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote
Segment Performance
Net sales in the Americas Beverage segment came in at $871 million, up 10.5% from the prior-year quarter’s tally of $788 million. Segment operating profit improved 18.6% year over year to $134 million.
The European Beverage segment’s sales went up 2.1% year over year to $346 million. Operating income came in at $39 million, flat year on year.
Revenues in the European Food segment fell 5% year over year to $402 million. Segment operating profit plunged 31.3% year over year to $33 million.
The Asia-Pacific segment’s revenues declined 6.2% year over year to $301 million. Operating profit was $45 million, flat year over year.
Revenues in the Transit Packaging segment totaled $522 million compared with the $569 million recorded in the year-ago period. Operating profit declined 9.6% year over year to $66 million.
Financial Update
Crown Holdings had cash and cash equivalents of $765 million at the end of the reported quarter compared with the year-earlier quarter’s $301 million. The company utilized $607 million cash in operating activities during the March-end quarter compared with the prior-year quarter figure of $666 million.
As of the quarter’s end, Crown Holdings’ long-term debt decreased to $8,631 million from $8,814 million as of end of the prior year.
Outlook
Crown Holdings has revoked its current-year guidance due to the uncertainty of the impact and duration of the coronavirus pandemic. In response to the virus outbreak, the company has imposed travel restrictions and measures to protect the health and ensure safety of its employees.
The company’s products are significant part of food and beverage supply chains, and also provide critical support to the transportation industry. It is focused on ensuring its manufacturing facilities across the globe remain operational while continuing to meet the evolving customer demand by delivering high quality products.
Crown Holdings remains on track to meet the future global growth of beverage-can demand. Also, it is committed to implement the previously-announced capacity-expansion projects with its strong liquidity position and sound capital structure.
Share Price Performance
Crown Holdings, along with Silgan Holdings Inc. (SLGN - Free Report) and Ball Corporation , is part of the Containers – Metal and Glass industry. Crown Holdings’ shares have gained 6.2% over the past year compared with the industry’s growth of 13.4%.
Zacks Rank and A Stock to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the Industrial Products sector is Sharps Compliance Corp. , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Sharps Compliance has an estimated earnings growth rate of a whopping 800% for 2020. In a year, the company’s shares have soared 114%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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