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The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $3.87 billion, indicating a decline of 1% from the prior-year quarter’s figure. The consensus mark for quarterly earnings currently stands at 18 cents per share, which suggests a 25% plunge from the prior-year quarter. The estimate has remained unchanged over the past 30 days.
Q3 Results
Amcor witnessed year-over-year declines in both third-quarter fiscal 2023 revenues and earnings. While earnings matched the Zacks Consensus Estimate, revenues missed the same. The company has a trailing four-quarter positive earnings surprise of 0.08%, on average.
Amcor’s total volume growth has been in the negative territory since the first quarter of 2023, reflecting weak demand in its markets. This is mainly due to the current inflationary pressures that have been weighing on consumer spending, which, in turn, has affected packaging demand. Customers have been trying to lower their elevated inventories, which has also weighed on volumes.
The decline was more pronounced in Amcor’s third-quarter fiscal 2023 results with volumes down 3%, compared with the 1% decline in the first quarter and 2% in the second quarter. Our model projects a 5% decline in overall volumes for the fiscal fourth quarter, factoring in inventory destocking at customers’ end as well as low demand. It is expected to offset the price/mix benefits of 4.5% projected for the quarter.
In addition to weak demand, so far in the fiscal year 2023, Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials as a result of market dynamics and higher rates of inflation impacting other costs. This is expected to be reflected in the company’s fourth-quarter earnings performance as well.
Segment Projections
The Flexibles segment has been reporting a decline in volumes in the last three quarters, impacted by overall weak demand and customer destocking. Volumes in priority pet care and healthcare end markets have shown resilience. However, these gains were offset by lower volumes in categories including condiments, meat and ready meals.
Our model projects a 4.7% decline in the segment’s overall volumes in the to-be-reported quarter. Price/mix is expected to be a favorable 5%. However, an unfavorable currency impact is expected to dampen sales by 4.2%. We also expect the sale of Amcor’s three plants in Russia to impact sales comparisons in the quarter. Our sales projection for the Flexibles segment is $2,805 million, indicating a 5.5% year-over-year decline.
The Rigid Packaging segment also remains impacted by the same unfavorable conditions mentioned above. In North America, overall beverage volumes were 5% lower year over year in the first nine-month period of fiscal 2023. Hot fill beverage container volumes were up 2% as a result of continued growth in key categories. The specialty container business has delivered volume growth in the healthcare, dairy and nutrition categories. Brand extensions and the introduction of new health and wellness-oriented products in PET containers have been supporting growth.
Our model projects a 6.2% drop in volumes for the segment and a price/mix gain of 2.8%. Pass-through of higher raw material costs is expected to aid sales by 10.3%. The sales projection for the segment is $993 million, indicating 5.4% year-over-year growth.
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 -5.56%.
Zacks Rank: Amcor currently carries a Zacks Rank #4 (Sell).
Price Performance
Over the past year, shares of Amcor have declined 23.6% compared with the industry’s 6.3% drop.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some stocks, which according to our model, have the right combination of elements to beat on earnings this season.
FTCH’s earnings for the to-be-reported quarter are expected to remain flat. The company reported better-than-expected earnings in two of the last four quarters and missed on the other two occasions, the average surprise being 4.5%.
Cintas (CTAS - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3. The company is expected to report a year-over-year improvement in revenues and earnings in its upcoming fourth-quarter fiscal 2023 results.
The Zacks Consensus Estimate for CTAS’ earnings for the quarter has remained stable at $3.62 per share over the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 4.8%, on average.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank of 2.
JACK is expected to register a 3.6% decline in earnings for the to-be-reported quarter. Notably, the company reported better-than-expected earnings in two of the last four quarters and missed on the other two occasions, the average surprise being 7.9%.
Image: Bigstock
Amcor (AMCR) to Report Q4 Earnings: What's in Store?
Amcor Plc (AMCR - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Aug 16 after the closing bell.
Q4 Estimates
The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $3.87 billion, indicating a decline of 1% from the prior-year quarter’s figure. The consensus mark for quarterly earnings currently stands at 18 cents per share, which suggests a 25% plunge from the prior-year quarter. The estimate has remained unchanged over the past 30 days.
Q3 Results
Amcor witnessed year-over-year declines in both third-quarter fiscal 2023 revenues and earnings. While earnings matched the Zacks Consensus Estimate, revenues missed the same. The company has a trailing four-quarter positive earnings surprise of 0.08%, on average.
Amcor PLC Price and EPS Surprise
Amcor PLC price-eps-surprise | Amcor PLC Quote
Volumes to Play Spoilsport in Q4
Amcor’s total volume growth has been in the negative territory since the first quarter of 2023, reflecting weak demand in its markets. This is mainly due to the current inflationary pressures that have been weighing on consumer spending, which, in turn, has affected packaging demand. Customers have been trying to lower their elevated inventories, which has also weighed on volumes.
The decline was more pronounced in Amcor’s third-quarter fiscal 2023 results with volumes down 3%, compared with the 1% decline in the first quarter and 2% in the second quarter. Our model projects a 5% decline in overall volumes for the fiscal fourth quarter, factoring in inventory destocking at customers’ end as well as low demand. It is expected to offset the price/mix benefits of 4.5% projected for the quarter.
In addition to weak demand, so far in the fiscal year 2023, Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials as a result of market dynamics and higher rates of inflation impacting other costs. This is expected to be reflected in the company’s fourth-quarter earnings performance as well.
Segment Projections
The Flexibles segment has been reporting a decline in volumes in the last three quarters, impacted by overall weak demand and customer destocking. Volumes in priority pet care and healthcare end markets have shown resilience. However, these gains were offset by lower volumes in categories including condiments, meat and ready meals.
Our model projects a 4.7% decline in the segment’s overall volumes in the to-be-reported quarter. Price/mix is expected to be a favorable 5%. However, an unfavorable currency impact is expected to dampen sales by 4.2%. We also expect the sale of Amcor’s three plants in Russia to impact sales comparisons in the quarter. Our sales projection for the Flexibles segment is $2,805 million, indicating a 5.5% year-over-year decline.
The Rigid Packaging segment also remains impacted by the same unfavorable conditions mentioned above. In North America, overall beverage volumes were 5% lower year over year in the first nine-month period of fiscal 2023. Hot fill beverage container volumes were up 2% as a result of continued growth in key categories. The specialty container business has delivered volume growth in the healthcare, dairy and nutrition categories. Brand extensions and the introduction of new health and wellness-oriented products in PET containers have been supporting growth.
Our model projects a 6.2% drop in volumes for the segment and a price/mix gain of 2.8%. Pass-through of higher raw material costs is expected to aid sales by 10.3%. The sales projection for the segment is $993 million, indicating 5.4% year-over-year growth.
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 -5.56%.
Zacks Rank: Amcor currently carries a Zacks Rank #4 (Sell).
Price Performance
Over the past year, shares of Amcor have declined 23.6% compared with the industry’s 6.3% drop.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some stocks, which according to our model, have the right combination of elements to beat on earnings this season.
Farfetch Limited has an Earnings ESP of +13.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
FTCH’s earnings for the to-be-reported quarter are expected to remain flat. The company reported better-than-expected earnings in two of the last four quarters and missed on the other two occasions, the average surprise being 4.5%.
Cintas (CTAS - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3. The company is expected to report a year-over-year improvement in revenues and earnings in its upcoming fourth-quarter fiscal 2023 results.
The Zacks Consensus Estimate for CTAS’ earnings for the quarter has remained stable at $3.62 per share over the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 4.8%, on average.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank of 2.
JACK is expected to register a 3.6% decline in earnings for the to-be-reported quarter. Notably, the company reported better-than-expected earnings in two of the last four quarters and missed on the other two occasions, the average surprise being 7.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.