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.
Amcor's (AMCR) Q1 Earnings Match Estimates, Revenues Beat
Read MoreHide Full Article
Amcor Plc (AMCR - Free Report) reported first-quarter fiscal 2022 (ended Sep 30, 2021) adjusted earnings per share of 18 cents, which came in line with the Zacks Consensus Estimate. The bottom line improved 13% year over year from 16 cents reported in the prior-year quarter.
Including special items, the company reported net earnings per share of 13 cents, up 4% from the prior-year quarter.
Total revenues improved 10% year over year to $3,420 million in the reported quarter and beat the Zacks Consensus Estimate of $3,276 million. Price increase contributed 9% to the improvement, while volumes were in line with the prior-year quarter.
Cost of sales increased 13% year over year to $2,770 million. Gross profit dipped 1% year over year to $650 million. Gross margin was 19%, reflecting a contraction of 210 basis points from the prior-year quarter.
SG&A expenses decreased 5% to $313 million year over year. Adjusted operating income was $381 million in the quarter, up 7% from the $358 million in the prior-year quarter. Adjusted operating margin was 11.1% compared with 11.6% in the prior-year quarter. Adjusted EBITDA in the quarter was $486 million compared with $460 million in the prior-year quarter.
Segment Performance
Flexibles: Net sales increased 10% year over year to $2,634 million. Adjusted operating income climbed 9% year over year to $339 million.
Rigid Packaging: The segment reported net sales of $786 million in the reported quarter, up 13% from the prior-year quarter. Adjusted operating income was down 14% year over year to $62 million.
Financial Updates
As of Sep 30, 2021, Amcor had $633 million of cash and cash equivalents compared with $757 million as of Sep 30, 2020. The company utilized $112 million of cash in operating activities in first-quarter fiscal 2022 compared with an outflow of $110 million in the prior-year quarter. Adjusted free cash flow was an outflow of $242 million in the reported quarter compared with usage of $190 million in the prior-year quarter. As of Sep 30, 2021, Amcor’s net debt totaled $5.95 billion, up from $5.4 billion as of Jun 30, 2021.
The company hiked quarterly dividend by 2% to 12 cents per share. Amcor repurchased 5.2 million shares for $64 million in the quarter. It plans to spend $400 million for share repurchases in fiscal 2022.
Fiscal 2022 Guidance Affirmed
Amcor expects adjusted constant currency earnings per share growth of approximately 7-11% in fiscal 2022 or approximately in the range of 79 cents to 81 cents. The company projects adjusted free cash flow between $1.1 billion and $1.2 billion in fiscal 2022.
Share Price Performance
Image Source: Zacks Investment Research
Over the past year, Amcor’s shares have gained 8.9%, compared with the industry’s growth of 22.2%.
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include The Manitowoc Company, Inc. (MTW - Free Report) , Encore Wire Corporation (WIRE - Free Report) and Heritage-Crystal Clean, Inc. . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Manitowoc has an anticipated earnings growth rate of 340% for fiscal 2021. The company’s shares have soared around 169% in a year.
Encore Wire has an estimated earnings growth rate of 491% for the ongoing fiscal year. The company’s shares have appreciated 194% in the past year.
Heritage-Crystal Clean has a projected earnings growth rate of 553% for the current year. The stock has appreciated around 104% in a year’s time.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Amcor's (AMCR) Q1 Earnings Match Estimates, Revenues Beat
Amcor Plc (AMCR - Free Report) reported first-quarter fiscal 2022 (ended Sep 30, 2021) adjusted earnings per share of 18 cents, which came in line with the Zacks Consensus Estimate. The bottom line improved 13% year over year from 16 cents reported in the prior-year quarter.
Including special items, the company reported net earnings per share of 13 cents, up 4% from the prior-year quarter.
Total revenues improved 10% year over year to $3,420 million in the reported quarter and beat the Zacks Consensus Estimate of $3,276 million. Price increase contributed 9% to the improvement, while volumes were in line with the prior-year quarter.
Amcor PLC Price, Consensus and EPS Surprise
Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote
Cost and Margins
Cost of sales increased 13% year over year to $2,770 million. Gross profit dipped 1% year over year to $650 million. Gross margin was 19%, reflecting a contraction of 210 basis points from the prior-year quarter.
SG&A expenses decreased 5% to $313 million year over year. Adjusted operating income was $381 million in the quarter, up 7% from the $358 million in the prior-year quarter. Adjusted operating margin was 11.1% compared with 11.6% in the prior-year quarter. Adjusted EBITDA in the quarter was $486 million compared with $460 million in the prior-year quarter.
Segment Performance
Flexibles: Net sales increased 10% year over year to $2,634 million. Adjusted operating income climbed 9% year over year to $339 million.
Rigid Packaging: The segment reported net sales of $786 million in the reported quarter, up 13% from the prior-year quarter. Adjusted operating income was down 14% year over year to $62 million.
Financial Updates
As of Sep 30, 2021, Amcor had $633 million of cash and cash equivalents compared with $757 million as of Sep 30, 2020. The company utilized $112 million of cash in operating activities in first-quarter fiscal 2022 compared with an outflow of $110 million in the prior-year quarter. Adjusted free cash flow was an outflow of $242 million in the reported quarter compared with usage of $190 million in the prior-year quarter. As of Sep 30, 2021, Amcor’s net debt totaled $5.95 billion, up from $5.4 billion as of Jun 30, 2021.
The company hiked quarterly dividend by 2% to 12 cents per share. Amcor repurchased 5.2 million shares for $64 million in the quarter. It plans to spend $400 million for share repurchases in fiscal 2022.
Fiscal 2022 Guidance Affirmed
Amcor expects adjusted constant currency earnings per share growth of approximately 7-11% in fiscal 2022 or approximately in the range of 79 cents to 81 cents. The company projects adjusted free cash flow between $1.1 billion and $1.2 billion in fiscal 2022.
Share Price Performance
Over the past year, Amcor’s shares have gained 8.9%, compared with the industry’s growth of 22.2%.
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include The Manitowoc Company, Inc. (MTW - Free Report) , Encore Wire Corporation (WIRE - Free Report) and Heritage-Crystal Clean, Inc. . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Manitowoc has an anticipated earnings growth rate of 340% for fiscal 2021. The company’s shares have soared around 169% in a year.
Encore Wire has an estimated earnings growth rate of 491% for the ongoing fiscal year. The company’s shares have appreciated 194% in the past year.
Heritage-Crystal Clean has a projected earnings growth rate of 553% for the current year. The stock has appreciated around 104% in a year’s time.