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Amcor (AMCR) to Report Q2 Earnings: What's in the Offing?

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Amcor Plc (AMCR - Free Report) is scheduled to report second-quarter fiscal 2024 results on Feb 6, after the closing bell.

Q2 Estimates

The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $3.29 billion, indicating a decline of 9.7% from the year-ago quarter’s reported figure. The consensus mark for quarterly earnings is currently 15 cents per share, which suggests a 21% plunge from the year-ago quarter’s actual. The estimate has been unchanged over the past 30 days.

Q1 Results

Amcor witnessed a year-over-year decline in first-quarter fiscal 2024 revenues and earnings. Both earnings and revenues surpassed the respective Zacks Consensus Estimate. The company has a trailing four-quarter earnings surprise of 6.35%, on average.

Amcor PLC Price and EPS Surprise Amcor PLC Price and EPS Surprise

Amcor PLC price-eps-surprise | Amcor PLC Quote

Volumes to Play Spoilsport in Q2

Amcor’s total volume growth has been in the negative territory since the first quarter of fiscal 2023, reflecting weak market demand. This is mainly due to the inflationary pressures that have been weighing on consumer spending, which, in turn, have affected packaging demand. Customers have been trying to lower their elevated inventories, which has also weighed on volumes.

Our model projects a 7.9% decline in overall volumes for the second quarter of fiscal 2024, factoring in inventory destocking at customers’ end, as well as low demand. It is expected to be offset by the price/mix benefits of 1% for the quarter.

In addition to weak demand, Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials because of market dynamics and higher rates of inflation impacting other costs. This is expected to have been reflected in the company’s fiscal second-quarter earnings margin results.

Segment Projections

The Flexibles segment reported volume declines in the last five quarters, impacted by overall weak demand and customer destocking. Considering there has been no major improvement in the quarter under review, our model projects an 8% decline in the segment’s overall volumes in the to-be-reported quarter. The price/mix is expected to be a favorable 1%. Our sales projection for the Flexibles segment is pegged at $2.54 billion, indicating a 9.8% year-over-year decline.

The Rigid Packaging segment has also been impacted by the unfavorable conditions mentioned above. Volumes have been down in the past four quarters. Our model projects a 7.7% drop in volumes for the segment in the fiscal second quarter and a price/mix gain of 1% for the second quarter of fiscal 2024. The sales projection for the segment is $785 million, indicating a 5.5% year-over-year decline.

However, brand extensions and the introduction of health and wellness-oriented products in PET containers have been supporting growth.

What the Zacks Model Indicates

Our proven model does not 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 of 3.

Price Performance

Over the past year, shares of Amcor have plunged 22.4% compared with the industry’s 6.6% decline.

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Stocks to Consider

Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.

Reliance Steel & Aluminum Co. (RS - Free Report) , scheduled to release earnings on Feb 15, has an Earnings ESP of +3.82% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RS’ earnings for the fourth quarter is pegged at $3.88 per share. The consensus estimate for the quarterly earnings has moved up 0.3% in the past 30 days. RS has an average trailing four-quarter earnings surprise of 10.6%.

Terex Corporation (TEX - Free Report) , scheduled to release earnings on Feb 8, has an Earnings ESP of +1.25% and a Zacks Rank of 3, at present.

The Zacks Consensus Estimate for TEX’s fourth-quarter earnings is pegged at $1.41 per share. The earnings estimate has moved up 0.7% in the past 30 days. TEX has an average trailing four-quarter earnings surprise of 30.4%.

Ingersoll Rand Inc. (IR - Free Report) , scheduled to release earnings on Feb 15, currently has an Earnings ESP of +0.98% and a Zacks Rank of 3, at present.

The consensus estimate for Ingersoll Rand’s earnings for the fourth quarter is pegged at 76 cents per share. The earnings estimate has been unchanged in the past 30 days. It has an average trailing four-quarter earnings surprise of 16.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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