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Amcor (AMCR) to Report Q3 Earnings: What's in the Cards?

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Amcor Plc (AMCR - Free Report) is scheduled to report third-quarter fiscal 2022 results on May 3, after the closing bell.

Q3 Estimates

The Zacks Consensus Estimate for the fiscal third-quarter revenues is pegged at $3.56 billion, indicating growth of 11% from the prior-year quarter. The consensus mark for quarterly earnings currently stands at 20 cents, suggesting year-over-year growth of 17.6%. The estimate has remained unchanged over the past 30 days.

Q2 Results

Amcor’s second quarter fiscal 2022 earnings came in line with the Zacks Consensus Estimate as well as the year-ago quarter. Revenues beat the Zacks Consensus Estimate and improved year on year. The company has a trailing four-quarter negative earnings surprise of 0.25%, on average.

Amcor PLC Price and EPS Surprise Amcor PLC Price and EPS Surprise

Amcor PLC price-eps-surprise | Amcor PLC Quote

Key Factors to Note

Amcor’s Rigid Packaging and Flexible Packaging segments have been performing well through a combination of organic growth and disciplined cost control. The Flexibles segment has witnessed HSD growth in healthcare and DD growth in pet food and coffee in the first half of fiscal 2022.

The Rigid packaging segment has been witnessing strong consumer demand. In North America, beverage volumes were up 3% year over year in the first half of fiscal 2022, while hot fill container volumes were in line with last year. The segment has been seeing volume growth in isotonics, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Strong consumer demand reflects higher-at-home consumption of packaged beverages supported by higher retail sales in multi-pack formats across a range of product categories. Brand extensions and the introduction of new health and wellness oriented products in PET containers has been supporting growth. These factors might get reflected in Amcor’s third-quarter fiscal 2022 top line.

Amcor’s acquisition of Bemis Company in June 2019 has expanded its global footprint, opened up new attractive end markets and customers for the company’s products, and greater economies of scale, thus driving efficiencies and higher margins. The integration has been essentially completed and the company has realized cost synergies of $75 million in fiscal 2021. Amcor anticipates exceeding the original target of $180 million by the end of fiscal 2022 by at least 10%. These synergies might have favored the to-be-reported quarter’s margin performance.

However, this benefit might have been offset by higher raw material, chemical labor and transportation costs. The company has been witnessing raw material price volatility due to supply shortages of certain resins and raw materials, which might have marred the to-be-reported quarter’s performance.

What the Zacks Model Indicates

Our proven model doesn’t conclusively predict an earnings beat for Amcor 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 Amcor is 0.00%.

Zacks Rank: Amcor currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

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Over the past year, shares of Amcor have gained 2.1% against the industry’s growth of 0.7%.

Stocks Poised to Beat Earnings Estimates

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:

Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $4.81 billion for the first quarter of 2022 indicates year-over-year growth of 2.6%.

The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2022 currently stands at $1.60, suggesting year-over-year growth of 11%. ETN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7%.

Deere & Company (DE - Free Report) currently has an Earnings ESP of +0.74% and a Zacks Rank of 2. The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2022 earnings is pegged at $6.65 per share, suggesting 17% growth from the year-ago quarter.

The Zacks Consensus Estimate for its quarterly revenues stands at $13.4 billion, suggesting year-over-year growth of 22.2%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average.

Sealed Air Corporation (SEE - Free Report) currently has an Earnings ESP of +1.09% and a Zacks Rank of 3. The Zacks Consensus Estimate for SEE’s quarterly revenues is pegged at $1.39 billion, which indicates an increase of 9.6% from the prior-year quarter’s levels.

The Zacks Consensus Estimate for Sealed Air’s first-quarter 2022 earnings has been stable in the past 30 days at 92 cents per share, suggesting year-over-year growth of 18%. SEE has a trailing four-quarter earnings surprise of 2.94%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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