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Crown Holdings (CCK) to Report Q2 Earnings: What's in the Offing?

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Crown Holdings, Inc. (CCK - Free Report) is scheduled to report second-quarter 2021 results on July 19, after the market closes.

A Sneak Peek at Q1 Results

In the last reported quarter, Crown Holdings’ earnings and sales beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter average earnings surprise of 18.2%.

Which Way are the Estimates Trending?

The Zacks Consensus Estimate for Crown Holdings’ earnings per share is pegged at $1.79 for the second quarter, suggesting year-over-year growth of 34.6%. The Zacks Consensus Estimate for total revenues is pinned at $2.9 billion for the quarter, indicating a year-over-year increase of 11.2%.

Let’s see how things have shaped up prior to this announcement.

Key Factors to Consider

Customers’ increasing preference for beverage cans over other packaging formats are fueling global beverage can demand for the company. Crown Holdings has, thus, been focusing on growing its global beverage can business through several expansion projects. In North America, beverage can growth has been on the rise in recent years as new beverage products are being introduced in cans. Markets such as Brazil, Europe, Mexico and Southeast Asia have also witnessed higher volumes and market expansion. These factors are likely to have contributed to the company’s June-end quarter performance.

The Zacks Consensus Estimate for the Americas Beverage segment revenues is pegged at $935 million for the quarter to be reported, suggesting year-over-year growth of 20.3%. The Zacks Consensus Estimate for the segment’s operating profit stands at $171 million for the second quarter, indicating a jump of 32.5% from the year-ago quarter.

The Beverage segment’s Zacks Consensus Estimate for revenues is pinned at $393 million, calling for year-on-year growth of 19%. The segment is expected to report an operating profit of $54 million compared with the year-ago quarter’s $37 million. The company’s Europe and North America businesses are witnessing surging demand for energy drinks, teas, juices, sparkling water and craft beer.

The Zacks Consensus Estimate for revenues of the European Food segment is pegged at $547 million for the April-June period, indicating a year-over-year increase of 9.6%. Operating profit for the segment stands at $76 million, suggesting 11.8% growth from the prior-year quarter.

The Zacks Consensus Estimate for the Asia-Pacific segment’s net sales stands at $301 million for the to-be-reported quarter compared with the year-ago quarter’s $270 million. Operating profit for the segment is pegged at $43.7 million compared with the year-ago period’s $39 million.

The Transit Packaging segment’s Zacks Consensus Estimate for revenues is pinned at $550 million for the quarter, indicating year-over-year growth of 19%. The segment is anticipated to report an operating profit of $82 million, calling for 61% growth from the prior-year quarter. Surging industrial demand might have driven the segment’s income in the second quarter. However, higher raw material prices like steel and aluminum might have hurt the company’s margin in the second quarter. Meanwhile, Crown Holdings is focused on implementing disciplined pricing, cost control and capital allocation.

Crown Holdings, Inc. Price and EPS Surprise

Crown Holdings, Inc. Price and EPS Surprise

Crown Holdings, Inc. price-eps-surprise | Crown Holdings, Inc. Quote

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for Crown Holdings this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Crown Holdings is -3.68%.

Zacks Rank: Crown Holdings currently carries a Zacks Rank of 2.

Price Performance

Crown Holdings’ shares have surged 54.5% over the past year, outperforming the industry’s growth of 26.7%.

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Stocks Worth a Look

Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Pentair plc (PNR - Free Report) has an Earnings ESP of +1.91% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Packaging Corporation of America (PKG - Free Report) has an Earnings ESP of +0.58% and carries a Zacks Rank #2, currently.

W.W. Grainger, Inc. (GWW - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +0.71%.