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Berry Global (BERY) to Post Q1 Earnings: What's in the Cards?
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Berry Global Group, Inc. (BERY - Free Report) is scheduled to report first-quarter fiscal 2022 (ended December 2021) results on Feb 3, before market open.
The company reported better-than-expected results in each of the trailing four quarters. Earnings surprise in the last four quarters was 16.50%, on average. In the last reported quarter, it posted earnings of $1.89 per share, which beat the Zacks Consensus Estimate of $1.53 by 23.53%.
Image Source: Zacks Investment Research
In the past three months, the company has gained 1.4% compared with the industry’s increase of 0.4%.
Factors at Play
Berry Global is anticipated to have benefited from strength in its consumer businesses across foodservice and beverage end markets in the fiscal first quarter. Solid momentum in the company’s business in the healthcare end market along with growth in demand for its protective films and can liner product lines is likely to have boosted its fiscal first-quarter top-line. Also, its partnerships across the value chain, coupled with a focus on operational execution and generating healthy free cash flow, are likely to have driven its performance in the quarter.
The company’s RPC Group business, which enhanced growth opportunities in the plastic and recycled packaging industry, is anticipated to have augmented its fiscal first-quarter revenues. Also, its investments in the latest equipment technologies, advantaged film development and design for circularity are likely to have been beneficial.
Despite strength across the end markets, supply chain challenges are expected to have adversely impacted Berry Global’s performance. Also, inflation in raw material and other costs such as freight, along with labor issues, might have affected its margins and profitability in the to-be-reported quarter. It’s worth noting that its adjusted operating margin declined 400 basis points year over year in fourth-quarter fiscal 2021 (ended Oct 2, 2021).
Given its extensive regional presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar might have hurt BERY’s overseas business in the fiscal first quarter.
The Zacks Consensus Estimate for fiscal first-quarter revenues from the Engineered Materials and Consumer Packaging — North America segments is currently pegged at $823 million and $797 million, indicating growth of 14% and 16.2%, respectively, from the year-ago reported numbers. Also, the consensus estimate for Consumer Packaging – International segment’s revenues is pegged at $1,018 million, indicating an increase of 3% on a year-over-year basis. The consensus estimate for revenues from Health, Hygiene & Specialties segment stands at $802 million, suggesting year-over-year growth of 8.4%.
The Zacks Consensus Estimate for the company’s fiscal first-quarter total revenues is currently pegged at $3,376 million, suggesting 7.7% growth from the year-ago figure. The consensus estimate for earnings of $1.38 indicates an increase of 23.2%.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Berry Global has an Earnings ESP of -5.24%, as the Most Accurate Estimate is pegged at $1.31, lower than the Zacks Consensus Estimate of $1.38.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for Expedia’s earnings is pegged at 97 cents per share for the fourth quarter of 2021. EXPE’s shares have gained 9.6% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have gained 15.1% in the past three months.
Johnson Controls International plc (JCI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Johnson Controls’s earnings is pegged at 53 cents per share for first-quarter fiscal 2022 (ended December 2021). JCI’ shares have lost 1.3% in the past three months.
Image: Bigstock
Berry Global (BERY) to Post Q1 Earnings: What's in the Cards?
Berry Global Group, Inc. (BERY - Free Report) is scheduled to report first-quarter fiscal 2022 (ended December 2021) results on Feb 3, before market open.
The company reported better-than-expected results in each of the trailing four quarters. Earnings surprise in the last four quarters was 16.50%, on average. In the last reported quarter, it posted earnings of $1.89 per share, which beat the Zacks Consensus Estimate of $1.53 by 23.53%.
In the past three months, the company has gained 1.4% compared with the industry’s increase of 0.4%.
Factors at Play
Berry Global is anticipated to have benefited from strength in its consumer businesses across foodservice and beverage end markets in the fiscal first quarter. Solid momentum in the company’s business in the healthcare end market along with growth in demand for its protective films and can liner product lines is likely to have boosted its fiscal first-quarter top-line. Also, its partnerships across the value chain, coupled with a focus on operational execution and generating healthy free cash flow, are likely to have driven its performance in the quarter.
The company’s RPC Group business, which enhanced growth opportunities in the plastic and recycled packaging industry, is anticipated to have augmented its fiscal first-quarter revenues. Also, its investments in the latest equipment technologies, advantaged film development and design for circularity are likely to have been beneficial.
Despite strength across the end markets, supply chain challenges are expected to have adversely impacted Berry Global’s performance. Also, inflation in raw material and other costs such as freight, along with labor issues, might have affected its margins and profitability in the to-be-reported quarter. It’s worth noting that its adjusted operating margin declined 400 basis points year over year in fourth-quarter fiscal 2021 (ended Oct 2, 2021).
Given its extensive regional presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar might have hurt BERY’s overseas business in the fiscal first quarter.
The Zacks Consensus Estimate for fiscal first-quarter revenues from the Engineered Materials and Consumer Packaging — North America segments is currently pegged at $823 million and $797 million, indicating growth of 14% and 16.2%, respectively, from the year-ago reported numbers. Also, the consensus estimate for Consumer Packaging – International segment’s revenues is pegged at $1,018 million, indicating an increase of 3% on a year-over-year basis. The consensus estimate for revenues from Health, Hygiene & Specialties segment stands at $802 million, suggesting year-over-year growth of 8.4%.
The Zacks Consensus Estimate for the company’s fiscal first-quarter total revenues is currently pegged at $3,376 million, suggesting 7.7% growth from the year-ago figure. The consensus estimate for earnings of $1.38 indicates an increase of 23.2%.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Berry Global has an Earnings ESP of -5.24%, as the Most Accurate Estimate is pegged at $1.31, lower than the Zacks Consensus Estimate of $1.38.
Berry Global Group, Inc. Price and EPS Surprise
Berry Global Group, Inc. price-eps-surprise | Berry Global Group, Inc. Quote
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Expedia Group, Inc. (EXPE - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Expedia’s earnings is pegged at 97 cents per share for the fourth quarter of 2021. EXPE’s shares have gained 9.6% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have gained 15.1% in the past three months.
Johnson Controls International plc (JCI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Johnson Controls’s earnings is pegged at 53 cents per share for first-quarter fiscal 2022 (ended December 2021). JCI’ shares have lost 1.3% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.