A month has gone by since the last earnings report for Berry Global (BERY Quick QuoteBERY - Free Report) . Shares have added about 15.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Berry Global due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Berry Global Q4 Earnings Beat, Revenues Decline Y/Y

Berry Global reported fourth-quarter fiscal 2022 (ended Sep 30, 2022) adjusted earnings (excluding 34 cents from non-recurring items) of $2.19 per share, which beat the Zacks Consensus Estimate of $2.15. The bottom line increased in double digits year over year due to lower costs.

Net sales of $3,421 million missed the Zacks Consensus Estimate of $3,682.6 million. The top line decreased 7% year over year, with a 2% decline in organic volumes.

In the fiscal fourth quarter, Berry Global’s cost of goods sold decreased 7.9% to $2,834 million. Selling, general and administrative expenses declined 7% to $185 million. Berry Global reported an operating EBITDA of $539 million, up 1.7% year over year. Adjusted operating income in the quarter increased 7.9% year over year to $340 million.

Segmental Discussion

Consumer Packaging – International sales were $1,003 million, up 8% from the year-ago quarter’s level. The results benefited from effective pricing actions. Operating income of $98 million dipped nearly 4% year over year. The segment accounted for 29.3% of the quarter’s net sales.

Consumer Packaging – North America’s sales were $888 million, up slightly year over year due to increased selling prices. Demand was almost flat in the period. Operating income jumped 60% year over year to $103 million. The segment accounted for 26% of total net sales.

Revenues generated from Health, Hygiene & Specialties amounted to $738 million, down 6% year over year due to lower selling prices. Operating income of $44 million declined 42% year over year. The segment accounted for 21.6% of total net sales in the reported quarter.

Revenues from Engineered Materials fell 7% year over year to $792 million due to reduced demand. Operating income of $91 million jumped 30% year over year due to higher prices and improved sales mix, partly offset by reduced customer demand. The segment accounted for 23.1% of the quarter’s net sales.

Balance Sheet and Cash Flow

At the end of the fourth quarter of fiscal 2022, Berry Global had cash and cash equivalents of $1,410 million compared with $1,091 million at the end of fiscal 2021. Current and long-term debt totaled $9,255 million compared with $9,460 million at the end of fiscal 2021.

During fiscal 2022, Berry Global generated net cash of $1,563 million from operating activities compared with $1,580 million in the year-ago period. Capital expenditure totaled $687 million compared with $676 million in the year-ago quarter. Free cash flow at the end of the fiscal fourth quarter was $876 million compared with $904 million in the year-ago period.

BERY repurchased shares worth $709 million in fiscal 2022.

Fiscal 2023 Outlook

Berry Global expects adjusted earnings of $7.30-$7.80 per share for fiscal 2023. This indicates an 8% increase at the mid-point compared with the year-ago period. The Zacks Consensus Estimate for fiscal 2023 adjusted earnings per share stands at $7.90.

BERY expects cash flow from operations of $1.4-$1.5 billion for the current fiscal year. Free cash flow is estimated in the range of $800-$900 million. The company expects to repurchase shares worth $700 million in fiscal 2023. BERY has boosted its share repurchase program to $1 billion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -21.92% due to these changes.

VGM Scores

Currently, Berry Global 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 20% 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

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Berry Global has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Berry Global belongs to the Zacks Containers - Paper and Packaging industry. Another stock from the same industry, Amcor (AMCR Quick QuoteAMCR - Free Report) , has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.

Amcor reported revenues of $3.71 billion in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $0.18 for the same period compares with $0.18 a year ago.

For the current quarter, Amcor is expected to post earnings of $0.18 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.

Amcor has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.