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Why Is Amcor (AMCR) Down 5.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Amcor (AMCR - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amcor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Amcor's Q2 Earnings Match Estimates, Revenues Beat
Amcor reported second-quarter fiscal 2022 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 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Amcor has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Amcor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Amcor (AMCR) Down 5.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Amcor (AMCR - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amcor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Amcor's Q2 Earnings Match Estimates, Revenues Beat
Amcor reported second-quarter fiscal 2022 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 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Amcor has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Amcor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.