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Silgan (SLGN) Q4 Earnings Top Estimates, Revenues Dip Y/Y
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Silgan Holdings Inc. (SLGN - Free Report) reported adjusted earnings of 63 cents per share in fourth-quarter 2023, beating the Zacks Consensus Estimate of 58 cents. The bottom line decreased 26% year over year but was within the company’s guidance of 55-65 cents.
Including one-time items, earnings were 60 cents per share compared with 22 cents in the prior-year quarter.
Total revenues decreased year over year to $1.34 billion from the prior-year quarter’s $1.45 billion. The top line also missed the Zacks Consensus Estimate of $1.39 billion.
Silgan Holdings Inc. Price, Consensus and EPS Surprise
In fourth-quarter 2023, the cost of goods sold decreased 8.3% year over year to $1.12 billion. The gross profit decreased 6.1% to $219 million. The gross margin was 16.3% compared with the prior-year quarter’s 16%.
Selling, general and administrative expenses were $96.5 million in the reported quarter, flat year over year. The company reported an operating income of $126 million in the quarter compared with $81 million in the prior-year quarter. The operating margin was 9.4% in the reported quarter compared with the prior-year quarter’s 5.6%.
Segmental Performance
Revenues in the Dispensing and Specialty Closures segment were down 3.4% year over year to $522 million in the fourth quarter. The figure lagged the Zacks Consensus Estimate of $558 million due to a lower volume and mix. Due to the persistent impacts of inflation on consumers and customer destocking activities, impacts of favorable foreign currency translation were offset by double-digit declines in higher volume metal closures.
The operating income for the segment was $68 million in the fourth quarter of 2023 compared with $65 million in fourth-quarter 2022. The figure lagged the Zacks Consensus Estimate of $78 million. The segment’s adjusted operating income was $87 million compared with $75 million in the prior-year period.
The Metal Containers segment’s revenues in the quarter declined 11.8% year over year to $665 million due to lower volumes and less favorable price/mix. However, revenues in the quarter surpassed the Zacks Consensus Estimate of $635 million.
The segment’s operating income in the quarter under review was $56 million, jumping from the prior-year quarter’s $8.5 million. However, the figure surpassed the consensus estimate of $44 million. Adjusted operating income for the segment amounted to $41 million, down 40.2% from the prior-year quarter.
In the Custom Containers segment, revenues were $153 million compared with the year-ago quarter’s $160 million. The figure lagged the Zacks Consensus Estimate of $161 million. Operating income slumped 46% year over year to $6.8 million and missed the consensus estimate of $18.9 million. The segment reported an adjusted operating income of $13 million, up from the previous year’s $11 million.
Financial Updates
The company had cash and cash equivalents of $643 million at the end of 2023 compared with $586 million at the end of 2022. It generated around $483 million in cash from operating activities in 2023 compared with $748 million in 2022.
2023 Performance
Silgan reported record adjusted earnings per share (EPS) of $3.40 for 2023 compared with $4.01 in the prior year. Earnings beat the Zacks Consensus Estimate of $3.35. Including one-time items, the bottom line was $2.98, down 3% from the $3.07 reported in 2022.
Sales were down 6.6% to $5.9 billion from the prior-year figure of $6.4 billion. The top line missed the Zacks Consensus Estimate of $6 billion .
2024 Outlook
Silgan expects 2024 adjusted earnings per share (EPS) between $3.55 and $3.75. For first-quarter 2024, SLGN anticipates adjusted EPS of 60-70 cents.
Price Performance
Silgan’s shares have lost 14.1% in the past year compared with the industry’s fall of 4.4%.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 51.8% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 26.1% in a year.
The Zacks Consensus Estimate for A. O. Smith’s 2024 earnings is pegged at $4.03 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 6.8%. The company has a trailing four-quarter average earnings surprise of 14%. AOS shares have gained 16% in the past year.
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Silgan (SLGN) Q4 Earnings Top Estimates, Revenues Dip Y/Y
Silgan Holdings Inc. (SLGN - Free Report) reported adjusted earnings of 63 cents per share in fourth-quarter 2023, beating the Zacks Consensus Estimate of 58 cents. The bottom line decreased 26% year over year but was within the company’s guidance of 55-65 cents.
Including one-time items, earnings were 60 cents per share compared with 22 cents in the prior-year quarter.
Total revenues decreased year over year to $1.34 billion from the prior-year quarter’s $1.45 billion. The top line also missed the Zacks Consensus Estimate of $1.39 billion.
Silgan Holdings Inc. Price, Consensus and EPS Surprise
Silgan Holdings Inc. price-consensus-eps-surprise-chart | Silgan Holdings Inc. Quote
Costs and Margins
In fourth-quarter 2023, the cost of goods sold decreased 8.3% year over year to $1.12 billion. The gross profit decreased 6.1% to $219 million. The gross margin was 16.3% compared with the prior-year quarter’s 16%.
Selling, general and administrative expenses were $96.5 million in the reported quarter, flat year over year. The company reported an operating income of $126 million in the quarter compared with $81 million in the prior-year quarter. The operating margin was 9.4% in the reported quarter compared with the prior-year quarter’s 5.6%.
Segmental Performance
Revenues in the Dispensing and Specialty Closures segment were down 3.4% year over year to $522 million in the fourth quarter. The figure lagged the Zacks Consensus Estimate of $558 million due to a lower volume and mix. Due to the persistent impacts of inflation on consumers and customer destocking activities, impacts of favorable foreign currency translation were offset by double-digit declines in higher volume metal closures.
The operating income for the segment was $68 million in the fourth quarter of 2023 compared with $65 million in fourth-quarter 2022. The figure lagged the Zacks Consensus Estimate of $78 million. The segment’s adjusted operating income was $87 million compared with $75 million in the prior-year period.
The Metal Containers segment’s revenues in the quarter declined 11.8% year over year to $665 million due to lower volumes and less favorable price/mix. However, revenues in the quarter surpassed the Zacks Consensus Estimate of $635 million.
The segment’s operating income in the quarter under review was $56 million, jumping from the prior-year quarter’s $8.5 million. However, the figure surpassed the consensus estimate of $44 million. Adjusted operating income for the segment amounted to $41 million, down 40.2% from the prior-year quarter.
In the Custom Containers segment, revenues were $153 million compared with the year-ago quarter’s $160 million. The figure lagged the Zacks Consensus Estimate of $161 million. Operating income slumped 46% year over year to $6.8 million and missed the consensus estimate of $18.9 million. The segment reported an adjusted operating income of $13 million, up from the previous year’s $11 million.
Financial Updates
The company had cash and cash equivalents of $643 million at the end of 2023 compared with $586 million at the end of 2022. It generated around $483 million in cash from operating activities in 2023 compared with $748 million in 2022.
2023 Performance
Silgan reported record adjusted earnings per share (EPS) of $3.40 for 2023 compared with $4.01 in the prior year. Earnings beat the Zacks Consensus Estimate of $3.35. Including one-time items, the bottom line was $2.98, down 3% from the $3.07 reported in 2022.
Sales were down 6.6% to $5.9 billion from the prior-year figure of $6.4 billion. The top line missed the Zacks Consensus Estimate of $6 billion .
2024 Outlook
Silgan expects 2024 adjusted earnings per share (EPS) between $3.55 and $3.75. For first-quarter 2024, SLGN anticipates adjusted EPS of 60-70 cents.
Price Performance
Silgan’s shares have lost 14.1% in the past year compared with the industry’s fall of 4.4%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
SLGN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are AZZ Inc. (AZZ - Free Report) , Applied Industrial Technologies (AIT - Free Report) and A. O. Smith Corporation (AOS - Free Report) . AZZ currently sports a Zacks Rank #1 (Strong Buy), and AIT and AOS carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 51.8% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 26.1% in a year.
The Zacks Consensus Estimate for A. O. Smith’s 2024 earnings is pegged at $4.03 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 6.8%. The company has a trailing four-quarter average earnings surprise of 14%. AOS shares have gained 16% in the past year.