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Crown Holdings (CCK) Q1 Earnings In Line, Sales Top Estimates
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Crown Holdings, Inc. (CCK - Free Report) recorded first-quarter 2019 adjusted earnings per share of $1.05, up 11.7% year over year. Earnings came in line with the Zacks Consensus Estimate.
On a reported basis, earnings per share increased 15% year over year to 77 cents in the quarter.
Net sales in the quarter climbed 25.4% year over year to $2,755 million, beating the Zacks Consensus Estimate of $2,750 million. This upside was driven by positive impact of the Signode acquisition, increased beverage and food can volumes, partly offset by unfavorable currency-translation impact of $100 million. Global beverage can volumes grew 3% year over year in the first quarter.
Cost and Margins
Cost of products sold rose 22.2% year over year to $2,210 million. On a year-over-year basis, gross profit surged 40% to $545 million and gross margin increased to 19.7% from 17.7% in the year-ago quarter.
Selling and administrative expenses flared up 74% year over year to $157 million. Segment operating income increased 28.5% year over year to $315 million in the reported quarter. Operating margin inched up to 11.4% from 11% reported in the year-ago quarter.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Net sales in the Americas Beverage segment came in at $788 million, up 4% from the prior-year quarter’s tally of $758 million. Segment operating profit increased 15.3% year over year to $113 million.
The European Beverage segment’s sales fell 8.6% year over year to $339 million. Operating income dropped 29% year over year to $39 million.
Revenues in the European Food segment edged down 1.2% year over year to $423 million. Segment operating profit went down 14.3% year over year to $48 million from $56 million.
The Asia-Pacific segment revenues slipped 4.7% year over year to $321 million. Operating profit went up to $45 million from $44 million witnessed in the comparable period last year.
Revenues in the Transit Packaging segment totaled $569 million. Operating profit came in at $73 million.
Financial Update
Crown Holdings had cash and cash equivalents of $301 million at the end of the reported quarter compared with $2,201 million at the end of the prior-year quarter. The company reported cash used in operating activities of $666 million in the reported quarter compared with cash usage of $751 million recorded in the year-earlier period.
Adjusted free cash flow was $735 million in the reported quarter compared with the prior-year quarter’s $665 million. As of the quarter’s end, Crown Holdings’ long-term debt increased to $8,814 million from $7,778 million as of the year-ago quarter end.
During the reported quarter, Crown Holdings began operations on the third beverage can line at its existing plant in Phnom Penh, Cambodia, and started the second high-speed aluminum line at the new beverage can facility in Valencia, Spain. During the fourth quarter, this year, the company will commence operations in a one-line beverage can plant in Rio Verde, central Brazil.
Outlook
Crown Holdings maintained its adjusted earnings per share guidance of $5.20-$5.40 for 2019. Adjusted earnings per share for second-quarter 2019 are forecast in the range of $1.43-$1.53. Adjusted free cash flow guidance remained unchanged at $775 million for the year.
Share Price Performance
In the past year, Crown Holdings’ stock has appreciated around 17.5% compared with the industry’s 28.2% gain.
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #4 (Sell).
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have surged 128.6%, in the past year.
Lawson Products has an expected earnings growth rate of a whopping 102.5% for the current year. The stock has appreciated 33.4% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 21.4%, over the past year.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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Crown Holdings (CCK) Q1 Earnings In Line, Sales Top Estimates
Crown Holdings, Inc. (CCK - Free Report) recorded first-quarter 2019 adjusted earnings per share of $1.05, up 11.7% year over year. Earnings came in line with the Zacks Consensus Estimate.
On a reported basis, earnings per share increased 15% year over year to 77 cents in the quarter.
Net sales in the quarter climbed 25.4% year over year to $2,755 million, beating the Zacks Consensus Estimate of $2,750 million. This upside was driven by positive impact of the Signode acquisition, increased beverage and food can volumes, partly offset by unfavorable currency-translation impact of $100 million. Global beverage can volumes grew 3% year over year in the first quarter.
Cost and Margins
Cost of products sold rose 22.2% year over year to $2,210 million. On a year-over-year basis, gross profit surged 40% to $545 million and gross margin increased to 19.7% from 17.7% in the year-ago quarter.
Selling and administrative expenses flared up 74% year over year to $157 million. Segment operating income increased 28.5% year over year to $315 million in the reported quarter. Operating margin inched up to 11.4% from 11% reported in the year-ago quarter.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. Price, Consensus and EPS Surprise | Crown Holdings, Inc. Quote
Segment Performance
Net sales in the Americas Beverage segment came in at $788 million, up 4% from the prior-year quarter’s tally of $758 million. Segment operating profit increased 15.3% year over year to $113 million.
The European Beverage segment’s sales fell 8.6% year over year to $339 million. Operating income dropped 29% year over year to $39 million.
Revenues in the European Food segment edged down 1.2% year over year to $423 million. Segment operating profit went down 14.3% year over year to $48 million from $56 million.
The Asia-Pacific segment revenues slipped 4.7% year over year to $321 million. Operating profit went up to $45 million from $44 million witnessed in the comparable period last year.
Revenues in the Transit Packaging segment totaled $569 million. Operating profit came in at $73 million.
Financial Update
Crown Holdings had cash and cash equivalents of $301 million at the end of the reported quarter compared with $2,201 million at the end of the prior-year quarter. The company reported cash used in operating activities of $666 million in the reported quarter compared with cash usage of $751 million recorded in the year-earlier period.
Adjusted free cash flow was $735 million in the reported quarter compared with the prior-year quarter’s $665 million. As of the quarter’s end, Crown Holdings’ long-term debt increased to $8,814 million from $7,778 million as of the year-ago quarter end.
During the reported quarter, Crown Holdings began operations on the third beverage can line at its existing plant in Phnom Penh, Cambodia, and started the second high-speed aluminum line at the new beverage can facility in Valencia, Spain. During the fourth quarter, this year, the company will commence operations in a one-line beverage can plant in Rio Verde, central Brazil.
Outlook
Crown Holdings maintained its adjusted earnings per share guidance of $5.20-$5.40 for 2019. Adjusted earnings per share for second-quarter 2019 are forecast in the range of $1.43-$1.53. Adjusted free cash flow guidance remained unchanged at $775 million for the year.
Share Price Performance
In the past year, Crown Holdings’ stock has appreciated around 17.5% compared with the industry’s 28.2% gain.
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have surged 128.6%, in the past year.
Lawson Products has an expected earnings growth rate of a whopping 102.5% for the current year. The stock has appreciated 33.4% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 21.4%, over the past year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>