We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter 2019 adjusted earnings per share of $1.46, down 5.8% year over year. The earnings figure missed the Zacks Consensus Estimate of $1.49.
On a reported basis, earnings per share increased 3% year over year to $1.02 in the quarter.
Net sales in the quarter came in at $3,035 million, down from the year-ago quarter’s $3,046 million. The reported figure, however, beat the Zacks Consensus Estimate of $3,029 million. The top-line figure reflects unfavorable currency translation of $80 million, offset by higher beverage can volumes. Crown Holdings achieved strong global beverage can volume growth during the second quarter.
Cost and Margins
Cost of products sold was down 2% year over year to $2,417 million. On a year-over-year basis, gross profit grew 6.5% to $618 million and gross margin inched up to 20% from the year-ago quarter’s 19%.
Selling and administrative expenses slipped 1.2% year over year to $157 million. Segment operating income edged down 0.7% year over year to $386 million during the June-end quarter. Operating margin came in at 12.7%, flat year on year.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Net sales in the Americas Beverage segment came in at $890 million, up 5% from the prior-year quarter’s tally of $848 million. Segment operating profit increased 23% year over year to $139 million.
The European Beverage segment’s sales went up 1.2% year over year to $410 million. Operating income was up 1.7% year over year to $60 million.
Revenues in the European Food segment fell 6% year over year to $483 million. Segment operating profit dropped 27% year over year to $62 million from $85 million.
The Asia-Pacific segment revenues were down 4% year over year to $319 million. Operating profit went up to $51 million from $47 million witnessed in the comparable period last year.
Revenues in the Transit Packaging segment totaled $592 million compared to $620 million recorded in the year-ago period. Operating profit declined 14.8% year over year to $80 million.
Financial Update
Crown Holdings had cash and cash equivalents of $342 million at the end of the reported quarter compared with the $298 million at the end of the prior-year quarter. The company reported cash used in operating activities of $227 million in the second quarter compared with cash usage of $492 million recorded in the year-earlier period.
Adjusted free cash flow was $360 million in the June-end quarter compared with the prior-year quarter’s $330 million. As of the quarter’s end, Crown Holdings’ long-term debt decreased to $8,549 million from $9,236 million as of the year-ago quarter end.
Business Update
During the reported quarter, Crown Holdings installed beverage-can capacity additions, began operations on the third beverage can line at its existing plant in Phnom Penh, Cambodia, started one-line high-speed plant in Parma, Italy, and a two-line high-speed plant in Valencia, Spain. This November, the company will commence operations in a one-line beverage can plant in Rio Verde, central Brazil. In order to support volume requirements in the North American beverage can business, the company has started construction of a third high-speed line at Nichols, New York facility, which will commence production during the second quarter of 2020.
Outlook
Crown Holdings now expects adjusted earnings per share to be $5.05-$5.20 for 2019, compared to prior range of $5.20 and $5.40. The muted guidance is mainly due to lower-than-expected full-year results in the European Food and Transit Packaging segments. Further, adjusted earnings per share for third-quarter 2019 are projected at $1.50-$1.60. Adjusted free cash flow is expected between $725 million and $750 million for the ongoing year compared with the previous estimate of $775 million.
Share Price Performance
Over the past year, Crown Holdings’ stock has appreciated around 37.3% compared with the industry’s growth of 57%.
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Roper Technologies has an estimated earnings growth rate of 9.8% for the ongoing year. The company’s shares have gained 33.8% in the past year.
John Bean Technologies has an expected earnings growth rate of 5.9% for the current year. The stock has appreciated 38% in a year’s time.
CECO Environmental has a projected earnings growth rate of 84.8% for 2019. The company’s shares have rallied 43% over the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Crown Holdings (CCK) Q2 Earnings Miss, Sales Trump Estimates
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter 2019 adjusted earnings per share of $1.46, down 5.8% year over year. The earnings figure missed the Zacks Consensus Estimate of $1.49.
On a reported basis, earnings per share increased 3% year over year to $1.02 in the quarter.
Net sales in the quarter came in at $3,035 million, down from the year-ago quarter’s $3,046 million. The reported figure, however, beat the Zacks Consensus Estimate of $3,029 million. The top-line figure reflects unfavorable currency translation of $80 million, offset by higher beverage can volumes. Crown Holdings achieved strong global beverage can volume growth during the second quarter.
Cost and Margins
Cost of products sold was down 2% year over year to $2,417 million. On a year-over-year basis, gross profit grew 6.5% to $618 million and gross margin inched up to 20% from the year-ago quarter’s 19%.
Selling and administrative expenses slipped 1.2% year over year to $157 million. Segment operating income edged down 0.7% year over year to $386 million during the June-end quarter. Operating margin came in at 12.7%, flat year on year.
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 $890 million, up 5% from the prior-year quarter’s tally of $848 million. Segment operating profit increased 23% year over year to $139 million.
The European Beverage segment’s sales went up 1.2% year over year to $410 million. Operating income was up 1.7% year over year to $60 million.
Revenues in the European Food segment fell 6% year over year to $483 million. Segment operating profit dropped 27% year over year to $62 million from $85 million.
The Asia-Pacific segment revenues were down 4% year over year to $319 million. Operating profit went up to $51 million from $47 million witnessed in the comparable period last year.
Revenues in the Transit Packaging segment totaled $592 million compared to $620 million recorded in the year-ago period. Operating profit declined 14.8% year over year to $80 million.
Financial Update
Crown Holdings had cash and cash equivalents of $342 million at the end of the reported quarter compared with the $298 million at the end of the prior-year quarter. The company reported cash used in operating activities of $227 million in the second quarter compared with cash usage of $492 million recorded in the year-earlier period.
Adjusted free cash flow was $360 million in the June-end quarter compared with the prior-year quarter’s $330 million. As of the quarter’s end, Crown Holdings’ long-term debt decreased to $8,549 million from $9,236 million as of the year-ago quarter end.
Business Update
During the reported quarter, Crown Holdings installed beverage-can capacity additions, began operations on the third beverage can line at its existing plant in Phnom Penh, Cambodia, started one-line high-speed plant in Parma, Italy, and a two-line high-speed plant in Valencia, Spain. This November, the company will commence operations in a one-line beverage can plant in Rio Verde, central Brazil. In order to support volume requirements in the North American beverage can business, the company has started construction of a third high-speed line at Nichols, New York facility, which will commence production during the second quarter of 2020.
Outlook
Crown Holdings now expects adjusted earnings per share to be $5.05-$5.20 for 2019, compared to prior range of $5.20 and $5.40. The muted guidance is mainly due to lower-than-expected full-year results in the European Food and Transit Packaging segments. Further, adjusted earnings per share for third-quarter 2019 are projected at $1.50-$1.60. Adjusted free cash flow is expected between $725 million and $750 million for the ongoing year compared with the previous estimate of $775 million.
Share Price Performance
Over the past year, Crown Holdings’ stock has appreciated around 37.3% compared with the industry’s growth of 57%.
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Roper Technologies, Inc. (ROP - Free Report) , John Bean Technologies Corp. (JBT - Free Report) and CECO Environmental Corp. (CECO - 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
Roper Technologies has an estimated earnings growth rate of 9.8% for the ongoing year. The company’s shares have gained 33.8% in the past year.
John Bean Technologies has an expected earnings growth rate of 5.9% for the current year. The stock has appreciated 38% in a year’s time.
CECO Environmental has a projected earnings growth rate of 84.8% for 2019. The company’s shares have rallied 43% over the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>