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Amcor Plc (AMCR - Free Report) reported third-quarter fiscal 2022 (ended Mar 30, 2022) adjusted earnings per share of 21 cents, which beat the Zacks Consensus Estimate of 20 cents. The bottom line improved 15% year over year from 18 cents reported in the prior-year quarter.
Including special items, the company reported net earnings per share of 18 cents, up 3% from the prior-year quarter.
Total revenues improved 16% year over year to $3,708 million in the reported quarter and surpassed the Zacks Consensus Estimate of $3,560 million.
Cost of sales increased 18% year over year to $2,977 million. Gross profit rose 7% year over year to $731 million. Gross margin was 19.7%, reflecting a contraction of 160 basis points from the prior-year quarter.
SG&A expenses inched up 0.5% year over year to $326 million. Adjusted operating income was $427 million in the quarter, up 6% from the $402 million in the prior-year quarter. Adjusted operating margin was 11.5% compared with 12.5% in the prior-year quarter. Adjusted EBITDA in the quarter was $531 million compared with $507 million in the prior-year quarter.
Financial Updates
As of Mar 30, 2022, Amcor had $1,077 million of cash and cash equivalents compared with $850 million as of Jun 30, 2021. The company generated $589 million of cash in operating activities in the first nine-month period in fiscal 2022 compared with $617 million in the prior-year period. Adjusted free cash flow was $263 million in the first nine-month period in fiscal 2022 compared with $360 million in the last-year period. As of Mar 31, 2022, Amcor’s net debt totaled $6.17 billion, up from $5.4 billion as of Jun 30, 2021.
Amcor repurchased 36 million shares for $423 million in nine months ended Mar 31, 2022. It plans to spend $600 million on share repurchases in fiscal 2022.
Fiscal 2022 Guidance Raised
Amcor expects adjusted constant currency earnings per share growth of approximately 9.5% to 11% in fiscal 2022, higher than the 7-11% projected earlier. Earnings per share is expected to range between 79.5 cents and 81.0 cents. This is higher than the earlier provided guidance of 79 cents to 81 cents per share. The company projects adjusted free cash flow of around $1.1 billion.
Share Price Performance
Image Source: Zacks Investment Research
Over the past year, Amcor’s shares have fallen 3.7%, compared with the industry’s decline of 2.0%.
Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days.
Alcoa has a trailing four-quarter earnings surprise of 17.4%, on average. AA’s shares have surged 65% in the past year.
Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 6% in the past year.
Graphic Packaging has an estimated earnings growth rate of 100% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 6%.
GPK pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 17% in a year’s time.
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Amcor (AMCR) Q3 Earnings Beat Estimates, Raises FY22 View
Amcor Plc (AMCR - Free Report) reported third-quarter fiscal 2022 (ended Mar 30, 2022) adjusted earnings per share of 21 cents, which beat the Zacks Consensus Estimate of 20 cents. The bottom line improved 15% year over year from 18 cents reported in the prior-year quarter.
Including special items, the company reported net earnings per share of 18 cents, up 3% from the prior-year quarter.
Total revenues improved 16% year over year to $3,708 million in the reported quarter and surpassed the Zacks Consensus Estimate of $3,560 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 18% year over year to $2,977 million. Gross profit rose 7% year over year to $731 million. Gross margin was 19.7%, reflecting a contraction of 160 basis points from the prior-year quarter.
SG&A expenses inched up 0.5% year over year to $326 million. Adjusted operating income was $427 million in the quarter, up 6% from the $402 million in the prior-year quarter. Adjusted operating margin was 11.5% compared with 12.5% in the prior-year quarter. Adjusted EBITDA in the quarter was $531 million compared with $507 million in the prior-year quarter.
Financial Updates
As of Mar 30, 2022, Amcor had $1,077 million of cash and cash equivalents compared with $850 million as of Jun 30, 2021. The company generated $589 million of cash in operating activities in the first nine-month period in fiscal 2022 compared with $617 million in the prior-year period. Adjusted free cash flow was $263 million in the first nine-month period in fiscal 2022 compared with $360 million in the last-year period. As of Mar 31, 2022, Amcor’s net debt totaled $6.17 billion, up from $5.4 billion as of Jun 30, 2021.
Amcor repurchased 36 million shares for $423 million in nine months ended Mar 31, 2022. It plans to spend $600 million on share repurchases in fiscal 2022.
Fiscal 2022 Guidance Raised
Amcor expects adjusted constant currency earnings per share growth of approximately 9.5% to 11% in fiscal 2022, higher than the 7-11% projected earlier. Earnings per share is expected to range between 79.5 cents and 81.0 cents. This is higher than the earlier provided guidance of 79 cents to 81 cents per share. The company projects adjusted free cash flow of around $1.1 billion.
Share Price Performance
Image Source: Zacks Investment Research
Over the past year, Amcor’s shares have fallen 3.7%, compared with the industry’s decline of 2.0%.
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector are Alcoa (AA - Free Report) , Packaging Corporation of America (PKG - Free Report) and Graphic Packaging Holding Company (GPK - Free Report) . While AA and PKG flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days.
Alcoa has a trailing four-quarter earnings surprise of 17.4%, on average. AA’s shares have surged 65% in the past year.
Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 6% in the past year.
Graphic Packaging has an estimated earnings growth rate of 100% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 6%.
GPK pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 17% in a year’s time.