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Amcor (AMCR) Earnings Matches, Sales Beat Estimates in Q4
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Amcor Plc (AMCR - Free Report) reported fourth-quarter fiscal 2022 (ended Jun 30, 2022) adjusted earnings per share (EPS) of 24 cents, which came in line with the Zacks Consensus Estimate. The bottom line increased 4% year over.
Including special items, the company reported net earnings per share of 7.3 cents, down 55% from the prior-year quarter.
Total revenues increased 13% year over year to $3,909 million in the reported quarter and beat the Zacks Consensus Estimate of $3,815 million.
Cost and Margins
Cost of sales was up 15% year over year to $3,115 million. Gross profit increased 7% year over year to $794 million. The gross margin was 20.3% compared with the year-ago quarter’s 21.5%.
SG&A expenses were up 4% year over year to $342 million. Adjusted operating income was $505 million in the quarter, up 6% from the $476 million in the prior-year quarter. The adjusted operating margin was 12.9% compared with 13.7% in the prior-year quarter. Adjusted EBITDA in the quarter was $609 million compared with $572 million in the prior-year quarter.
Financial Updates
As of Jun 30, 2022, Amcor had $775 million of cash and cash equivalents compared with $850 million as of Jun 30, 2021. The company generated $1,526 million of cash in operating activities in fiscal 2022 compared with $1,461 million in fiscal 2021. Adjusted free cash flow was $1,066 million in fiscal 2022 compared with $1,099 million in the prior fiscal. As of Jun 30, 2022, Amcor’s net debt totaled $5.7 billion, up from $5.4 billion as of Jun 30, 2021.
In fiscal 2022, Amcor repurchased $600 million in shares, which reduced the total number of shares issued and outstanding by approximately 3%.
Fiscal 2023 Guidance
Amcor expects adjusted comparable constant currency EPS growth of approximately 3-8% in fiscal 2023, comprising approximately 5-10% growth from the underlying business performance and a benefit of approximately 2% from share repurchases. EPS is expected to be in the range of 80-84 cents. The company projects adjusted free cash flow of around $1 billion to $1.1 billion.
In fiscal 2023, AMCR estimates a negative impact of approximately 2% related to the scale down and the planned sale of the company's three plants in Russia and an unfavorable impact of approximately 2% related to a stronger US dollar.
Share Price Performance
In the past year, Amcor’s shares have gained 4.9% compared with the industry’s growth of 4.1%.
Applied Industrial has an estimated earnings growth rate of 10.9% for fiscal 2023. In the past 60 days, the Zacks Consensus Estimate for fiscal 2023 earnings has been revised upward by 6%.
Applied Industrial pulled off a trailing four-quarter earnings surprise of 22.8%, on average. AIT’s shares have soared 32.2% in a year.
Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 18.6% in the past year.
Sonoco has an expected earnings growth rate of 78.3% for 2022. The Zacks Consensus Estimate for the current year’s earnings moved up 18% in the past 60 days.
Sonoco has a trailing four-quarter earnings surprise of 4.06%, on average. SON’s shares have moved up 1.7% in the past year.
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Amcor (AMCR) Earnings Matches, Sales Beat Estimates in Q4
Amcor Plc (AMCR - Free Report) reported fourth-quarter fiscal 2022 (ended Jun 30, 2022) adjusted earnings per share (EPS) of 24 cents, which came in line with the Zacks Consensus Estimate. The bottom line increased 4% year over.
Including special items, the company reported net earnings per share of 7.3 cents, down 55% from the prior-year quarter.
Total revenues increased 13% year over year to $3,909 million in the reported quarter and beat the Zacks Consensus Estimate of $3,815 million.
Cost and Margins
Cost of sales was up 15% year over year to $3,115 million. Gross profit increased 7% year over year to $794 million. The gross margin was 20.3% compared with the year-ago quarter’s 21.5%.
SG&A expenses were up 4% year over year to $342 million. Adjusted operating income was $505 million in the quarter, up 6% from the $476 million in the prior-year quarter. The adjusted operating margin was 12.9% compared with 13.7% in the prior-year quarter. Adjusted EBITDA in the quarter was $609 million compared with $572 million in the prior-year quarter.
Financial Updates
As of Jun 30, 2022, Amcor had $775 million of cash and cash equivalents compared with $850 million as of Jun 30, 2021. The company generated $1,526 million of cash in operating activities in fiscal 2022 compared with $1,461 million in fiscal 2021. Adjusted free cash flow was $1,066 million in fiscal 2022 compared with $1,099 million in the prior fiscal. As of Jun 30, 2022, Amcor’s net debt totaled $5.7 billion, up from $5.4 billion as of Jun 30, 2021.
In fiscal 2022, Amcor repurchased $600 million in shares, which reduced the total number of shares issued and outstanding by approximately 3%.
Fiscal 2023 Guidance
Amcor expects adjusted comparable constant currency EPS growth of approximately 3-8% in fiscal 2023, comprising approximately 5-10% growth from the underlying business performance and a benefit of approximately 2% from share repurchases. EPS is expected to be in the range of 80-84 cents. The company projects adjusted free cash flow of around $1 billion to $1.1 billion.
In fiscal 2023, AMCR estimates a negative impact of approximately 2% related to the scale down and the planned sale of the company's three plants in Russia and an unfavorable impact of approximately 2% related to a stronger US dollar.
Share Price Performance
In the past year, Amcor’s shares have gained 4.9% compared with the industry’s growth of 4.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies, Inc. (AIT - Free Report) , Greif Inc. (GEF - Free Report) and Sonoco Products Company (SON - Free Report) . While AIT sports a Zacks Rank #1 (Strong Buy), GEF & SON carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial has an estimated earnings growth rate of 10.9% for fiscal 2023. In the past 60 days, the Zacks Consensus Estimate for fiscal 2023 earnings has been revised upward by 6%.
Applied Industrial pulled off a trailing four-quarter earnings surprise of 22.8%, on average. AIT’s shares have soared 32.2% in a year.
Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 18.6% in the past year.
Sonoco has an expected earnings growth rate of 78.3% for 2022. The Zacks Consensus Estimate for the current year’s earnings moved up 18% in the past 60 days.
Sonoco has a trailing four-quarter earnings surprise of 4.06%, on average. SON’s shares have moved up 1.7% in the past year.