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The Zacks Consensus Estimate for the fiscal third-quarter revenues is pegged at $3.69 billion, indicating a decline of 0.5% from the prior-year quarter’s figure. The consensus mark for quarterly earnings currently stands at 18 cents per share, which suggests a 14.3% decline from the prior-year quarter. The estimate has remained unchanged over the past 30 days.
Q2 Results
Amcor’s second quarter fiscal 2023 earnings improved 6% year over year and revenues were up 4%. Both revenues and earnings beat the Zacks Consensus Estimate. The company has a trailing four-quarter negative earnings surprise of 1.33%, on average.
Amcor’s Rigid Packaging and Flexible Packaging segments had been performing well in the past few quarters through a combination of organic growth and disciplined cost control. The Flexibles segment witnessed growth in volumes in healthcare, cheese, pet care and home and personal care categories in North America, while higher volumes have been witnessed in pharmaceuticals, capsules and pet care in Europe.
In the Rigid packaging segment, hot-fill container volumes have been strong in the past few quarters in North America. In specialty containers, volume growth has been noted in healthcare, dairy and nutrition end markets. Brand extensions and the introduction of new health and wellness-oriented products in PET containers have been supporting growth.
However, the current inflationary scenario has weighed on consumer spending lately and is likely to have thwarted volume levels for Amcor. This will likely have reflected in its third-quarter 2023 results.
Amcor’s acquisition of Bemis Company in June 2019 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 buyout is expected to have expanded the Flexible segment’s margins.
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 is likely to have marred the to-be-reported quarter’s margin performance. Also, higher interest expenses are expected to have hurt margins.
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 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).
Price Performance
Image Source: Zacks Investment Research
Over the past year, shares of Amcor have declined 10% against the industry’s 2.1% rise.
Stocks Poised to Beat Earnings Estimates
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Ingersoll Rand (IR - Free Report) is scheduled to release first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IR’s first-quarter earnings has moved north 4% in the past 60 days. The company has a trailing four-quarter earnings surprise of 8.5%, on average.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +3.06% and a Zacks Rank of 2. The company is set to release first-quarter 2023 results on May 2.
The Zacks Consensus Estimate for Zebra Technologies’ first-quarter earnings has been revised upward by approximately 1% in the past 60 days. The consensus mark suggests a year-over-year decline of 2.2%. ZBRA has a trailing four-quarter earnings surprise of 2.5%, on average.
Johnson Controls International (JCI - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2. The company is scheduled to release first-quarter 2023 results on May 5.
The Zacks Consensus Estimate for JCI’s first-quarter earnings has remained steady in the past 60 days. The estimate indicates year-over-year growth of 15.9%. The company has a trailing four-quarter earnings surprise of 0.7%, on average.
Image: Bigstock
Amcor (AMCR) to Report Q3 Earnings: What's in the Offing?
Amcor Plc (AMCR - Free Report) is scheduled to report third-quarter fiscal 2023 results on May 2, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for the fiscal third-quarter revenues is pegged at $3.69 billion, indicating a decline of 0.5% from the prior-year quarter’s figure. The consensus mark for quarterly earnings currently stands at 18 cents per share, which suggests a 14.3% decline from the prior-year quarter. The estimate has remained unchanged over the past 30 days.
Q2 Results
Amcor’s second quarter fiscal 2023 earnings improved 6% year over year and revenues were up 4%. Both revenues and earnings beat the Zacks Consensus Estimate. The company has a trailing four-quarter negative earnings surprise of 1.33%, on average.
Amcor PLC Price, Consensus and EPS Surprise
Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote
Key Factors to Note
Amcor’s Rigid Packaging and Flexible Packaging segments had been performing well in the past few quarters through a combination of organic growth and disciplined cost control. The Flexibles segment witnessed growth in volumes in healthcare, cheese, pet care and home and personal care categories in North America, while higher volumes have been witnessed in pharmaceuticals, capsules and pet care in Europe.
In the Rigid packaging segment, hot-fill container volumes have been strong in the past few quarters in North America. In specialty containers, volume growth has been noted in healthcare, dairy and nutrition end markets. Brand extensions and the introduction of new health and wellness-oriented products in PET containers have been supporting growth.
However, the current inflationary scenario has weighed on consumer spending lately and is likely to have thwarted volume levels for Amcor. This will likely have reflected in its third-quarter 2023 results.
Amcor’s acquisition of Bemis Company in June 2019 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 buyout is expected to have expanded the Flexible segment’s margins.
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 is likely to have marred the to-be-reported quarter’s margin performance. Also, higher interest expenses are expected to have hurt margins.
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 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).
Price Performance
Image Source: Zacks Investment Research
Over the past year, shares of Amcor have declined 10% against the industry’s 2.1% rise.
Stocks Poised to Beat Earnings Estimates
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Ingersoll Rand (IR - Free Report) is scheduled to release first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IR’s first-quarter earnings has moved north 4% in the past 60 days. The company has a trailing four-quarter earnings surprise of 8.5%, on average.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +3.06% and a Zacks Rank of 2. The company is set to release first-quarter 2023 results on May 2.
The Zacks Consensus Estimate for Zebra Technologies’ first-quarter earnings has been revised upward by approximately 1% in the past 60 days. The consensus mark suggests a year-over-year decline of 2.2%. ZBRA has a trailing four-quarter earnings surprise of 2.5%, on average.
Johnson Controls International (JCI - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2. The company is scheduled to release first-quarter 2023 results on May 5.
The Zacks Consensus Estimate for JCI’s first-quarter earnings has remained steady in the past 60 days. The estimate indicates year-over-year growth of 15.9%. The company has a trailing four-quarter earnings surprise of 0.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.