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Amcor's (AMCR) Q2 Earnings Match Estimates, Revenues Beat
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Amcor Plc (AMCR - Free Report) reported second-quarter fiscal 2022 (ended Dec 31, 2021) adjusted earnings per share of 18 cents, which came in line with the Zacks Consensus Estimate. The bottom line was also flat with the prior-year quarter.
Including special items, the company reported net earnings per share of 15 cents, up 6% from the prior-year quarter.
Total revenues improved 13% year over year to $3,420 million for the reported quarter and beat the Zacks Consensus Estimate of $3,347 million.
Cost of sales increased 173% year over year to $2,862 million. Gross profit dipped 1% year over year to $645 million. Gross margin was 18.4% for the quarter under review, reflecting a contraction of 260 basis points from the prior-year quarter.
SG&A expenses decreased 1.6% year on year to $303 million. Adjusted operating income was $319 million for the quarter, down 0.3% from $320 million in the prior-year quarter. Adjusted operating margin was 9.1% compared with 10.3% in the prior-year quarter.
Financial Updates
As of the end of second-quarter fiscal 2022, Amcor had $626 million of cash and cash equivalents compared with $850 million at fiscal 2021-end. The company generated $323 million of cash from operating activities in first-half fiscal 2022 compared with $442 million in the prior-year comparable period. Adjusted free cash flow was $105 million for the first six-month period of fiscal 2022 compared with $276 million in the prior-year comparable period. As of Dec 31, 2021, Amcor’s net debt totaled $6.04 billion, up from $5.4 billion on Jun 30, 2021.
Amcor repurchased 24.6 million shares for $295 million in the first half of fiscal 2022. In addition to the earlier plan of spending $400 million on share repurchases, Amcor allocated an additional $200 million of cash toward share repurchases. These share repurchases will, however, not reflect on earnings growth until fiscal 2023, as there will be no material impact from the same on the weighted average number of shares outstanding in fiscal 2022.
Fiscal 2022 Guidance Affirmed
Amcor expects adjusted constant-currency earnings per share growth of 7-11% or 79-81 cents for fiscal 2022. The company projects adjusted free cash flow between $1.1 billion and $1.2 billion in fiscal 2022.
Share Price Performance
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Over the past year, Amcor’s shares have gained 5.9% compared with the industry’s growth of 3.5%.
Dover’s fourth-quarter 2021 (ended Dec 31, 2020) adjusted earnings per share increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of 12% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for fiscal 2022 earnings has been revised 3% upward. The company’s shares have rallied around 40.5% over a year.
Silgan Holdings’ fourth-quarter 2021 (ended Dec 31, 2020) adjusted earnings per share improved 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved 3% north in the past 60 days. Over a year, SLGN’s shares have appreciated 23.5% in a year’s time.
Applied Industrial Technologies reported adjusted earnings per share of $1.46 per share for second-quarter fiscal 2022 (ended Dec 31, 2020), which improved 49% year on year and beat the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 14% for 2022. The Zacks Consensus Estimate for earnings for the current year has been unchanged in the past 60 days. AIT’s shares have appreciated 36% over a year.
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Amcor's (AMCR) Q2 Earnings Match Estimates, Revenues Beat
Amcor Plc (AMCR - Free Report) reported second-quarter fiscal 2022 (ended Dec 31, 2021) adjusted earnings per share of 18 cents, which came in line with the Zacks Consensus Estimate. The bottom line was also flat with the prior-year quarter.
Including special items, the company reported net earnings per share of 15 cents, up 6% from the prior-year quarter.
Total revenues improved 13% year over year to $3,420 million for the reported quarter and beat the Zacks Consensus Estimate of $3,347 million.
Amcor PLC Price, Consensus and EPS Surprise
Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote
Cost and Margins
Cost of sales increased 173% year over year to $2,862 million. Gross profit dipped 1% year over year to $645 million. Gross margin was 18.4% for the quarter under review, reflecting a contraction of 260 basis points from the prior-year quarter.
SG&A expenses decreased 1.6% year on year to $303 million. Adjusted operating income was $319 million for the quarter, down 0.3% from $320 million in the prior-year quarter. Adjusted operating margin was 9.1% compared with 10.3% in the prior-year quarter.
Financial Updates
As of the end of second-quarter fiscal 2022, Amcor had $626 million of cash and cash equivalents compared with $850 million at fiscal 2021-end. The company generated $323 million of cash from operating activities in first-half fiscal 2022 compared with $442 million in the prior-year comparable period. Adjusted free cash flow was $105 million for the first six-month period of fiscal 2022 compared with $276 million in the prior-year comparable period. As of Dec 31, 2021, Amcor’s net debt totaled $6.04 billion, up from $5.4 billion on Jun 30, 2021.
Amcor repurchased 24.6 million shares for $295 million in the first half of fiscal 2022. In addition to the earlier plan of spending $400 million on share repurchases, Amcor allocated an additional $200 million of cash toward share repurchases. These share repurchases will, however, not reflect on earnings growth until fiscal 2023, as there will be no material impact from the same on the weighted average number of shares outstanding in fiscal 2022.
Fiscal 2022 Guidance Affirmed
Amcor expects adjusted constant-currency earnings per share growth of 7-11% or 79-81 cents for fiscal 2022. 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 5.9% compared with the industry’s growth of 3.5%.
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Dover Corporation (DOV - Free Report) , Silgan Holdings Inc. (SLGN - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s fourth-quarter 2021 (ended Dec 31, 2020) adjusted earnings per share increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of 12% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for fiscal 2022 earnings has been revised 3% upward. The company’s shares have rallied around 40.5% over a year.
Silgan Holdings’ fourth-quarter 2021 (ended Dec 31, 2020) adjusted earnings per share improved 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved 3% north in the past 60 days. Over a year, SLGN’s shares have appreciated 23.5% in a year’s time.
Applied Industrial Technologies reported adjusted earnings per share of $1.46 per share for second-quarter fiscal 2022 (ended Dec 31, 2020), which improved 49% year on year and beat the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 14% for 2022. The Zacks Consensus Estimate for earnings for the current year has been unchanged in the past 60 days. AIT’s shares have appreciated 36% over a year.