We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Crown Holdings (CCK) Earnings Miss Estimates in Q4, Rise Y/Y
Read MoreHide Full Article
Crown Holdings, Inc. (CCK - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.24, lagging the Zacks Consensus Estimate of $1.42. The bottom line increased 6% year over year but missed the company’s guidance of $1.40-$1.50.
Including one-time items, the company reported earnings from continuing operations of 27 cents per share in the quarter under review compared with earnings of 74 cents per share in the prior-year quarter.
Net sales in the quarter totaled $2.86 billion, down 5.1% from the year-ago quarter’s $3.01 billion. The downside resulted from a pass-through of lower material costs and volumes across most businesses. These were offset by increased beverage can unit volumes in Americas Beverage and favorable foreign currency translation. The reported figure missed the Zacks Consensus Estimate of $2.93 billion.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
The cost of products sold decreased 10.5% year over year to $2.24 billion. On a year-over-year basis, gross profit increased 21.9% to $613 million. The gross margin came in at 21.4%, up from the year-ago quarter’s 16.7%.
Selling and administrative expenses grew 5.8% year over year to $145 million. The total segment operating income was $382 million in the quarter under review compared with the prior-year quarter’s $292 million. The total segment operating margin was 13.4% compared with 9.7% in the prior-year quarter.
Segmental Performances
Net sales in the Americas Beverage segment totaled around $1.3 billion, up 7.4% year over year. The figure surpassed our estimate of $1.22 billion for the quarter. The segment’s operating profit increased 44.1% year over year to $255 million. Our estimate was $176 million.
The European Beverage segment’s sales fell 13.5% year over year to $392 million. The figure missed our estimate of $405 million. Operating income was $18 million, marking a substantial improvement from the year-ago quarter’s $7 million. The metric missed our projected figure of $44 million.
The Asia-Pacific segment’s revenues totaled $320 million, down 19% year over year. It surpassed our estimate of $300 million for the quarter. Operating profit was $47 million compared with the prior-year quarter’s $29 million. Our estimate for the same was $28.7 million.
Revenues in the Transit Packaging segment totaled $541 million compared with the year-ago quarter’s $588 million. The figure was lower than our estimation of $641 million. Operating profit improved 5.6% year over year to $75 million. The figure was higher than our projection of $72 million.
Financial Update
Crown Holdings had cash and cash equivalents of $1.31 billion at the end of 2023, up from $0.55 billion at the end of 2022. The company generated $1.45 billion in cash from operating activities in 2023 compared with $0.8 billion in the prior-year period.
Crown Holdings’ long-term debt fell to $6.69 billion at the end of 2023 from $6.79 billion at the prior-year quarter’s end.
2023 Performance
The company reported 2023 adjusted EPS of $5.86, missing the Zacks Consensus Estimate of $6.03. The bottom line slumped 13% year over year and came below the company’s guidance of $6.00-$6.10.
Including one-time items, the company reported earnings from continuing operations of $3.76 per share in the quarter under review compared with $5.99 per share in the prior-year quarter.
Net sales in the year totaled $12.01 billion, down 7.2% year over year. The reported figure missed the Zacks Consensus Estimate of $12.08 billion.
Outlook
Crown Holdings projects first-quarter 2024 adjusted EPS between 90 cents and $1.00. It projects full-year adjusted EPS of $5.80-$6.20 per share.
Price Performance
Crown Holdings’ shares have gained 1.6% in the past year against the industry’s fall of 1.9%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.11 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 49.2% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 EPS 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.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Crown Holdings (CCK) Earnings Miss Estimates in Q4, Rise Y/Y
Crown Holdings, Inc. (CCK - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.24, lagging the Zacks Consensus Estimate of $1.42. The bottom line increased 6% year over year but missed the company’s guidance of $1.40-$1.50.
Including one-time items, the company reported earnings from continuing operations of 27 cents per share in the quarter under review compared with earnings of 74 cents per share in the prior-year quarter.
Net sales in the quarter totaled $2.86 billion, down 5.1% from the year-ago quarter’s $3.01 billion. The downside resulted from a pass-through of lower material costs and volumes across most businesses. These were offset by increased beverage can unit volumes in Americas Beverage and favorable foreign currency translation. The reported figure missed the Zacks Consensus Estimate of $2.93 billion.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote
Costs and Margins
The cost of products sold decreased 10.5% year over year to $2.24 billion. On a year-over-year basis, gross profit increased 21.9% to $613 million. The gross margin came in at 21.4%, up from the year-ago quarter’s 16.7%.
Selling and administrative expenses grew 5.8% year over year to $145 million. The total segment operating income was $382 million in the quarter under review compared with the prior-year quarter’s $292 million. The total segment operating margin was 13.4% compared with 9.7% in the prior-year quarter.
Segmental Performances
Net sales in the Americas Beverage segment totaled around $1.3 billion, up 7.4% year over year. The figure surpassed our estimate of $1.22 billion for the quarter. The segment’s operating profit increased 44.1% year over year to $255 million. Our estimate was $176 million.
The European Beverage segment’s sales fell 13.5% year over year to $392 million. The figure missed our estimate of $405 million. Operating income was $18 million, marking a substantial improvement from the year-ago quarter’s $7 million. The metric missed our projected figure of $44 million.
The Asia-Pacific segment’s revenues totaled $320 million, down 19% year over year. It surpassed our estimate of $300 million for the quarter. Operating profit was $47 million compared with the prior-year quarter’s $29 million. Our estimate for the same was $28.7 million.
Revenues in the Transit Packaging segment totaled $541 million compared with the year-ago quarter’s $588 million. The figure was lower than our estimation of $641 million. Operating profit improved 5.6% year over year to $75 million. The figure was higher than our projection of $72 million.
Financial Update
Crown Holdings had cash and cash equivalents of $1.31 billion at the end of 2023, up from $0.55 billion at the end of 2022. The company generated $1.45 billion in cash from operating activities in 2023 compared with $0.8 billion in the prior-year period.
Crown Holdings’ long-term debt fell to $6.69 billion at the end of 2023 from $6.79 billion at the prior-year quarter’s end.
2023 Performance
The company reported 2023 adjusted EPS of $5.86, missing the Zacks Consensus Estimate of $6.03. The bottom line slumped 13% year over year and came below the company’s guidance of $6.00-$6.10.
Including one-time items, the company reported earnings from continuing operations of $3.76 per share in the quarter under review compared with $5.99 per share in the prior-year quarter.
Net sales in the year totaled $12.01 billion, down 7.2% year over year. The reported figure missed the Zacks Consensus Estimate of $12.08 billion.
Outlook
Crown Holdings projects first-quarter 2024 adjusted EPS between 90 cents and $1.00. It projects full-year adjusted EPS of $5.80-$6.20 per share.
Price Performance
Crown Holdings’ shares have gained 1.6% in the past year against the industry’s fall of 1.9%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc. (CDRE - Free Report) , AZZ Inc. (AZZ - Free Report) , and Applied Industrial Technologies (AIT - Free Report) . CDRE currently sports a Zacks Rank #1 (Strong Buy), and AZZ and AIT 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 Cadre Holdings’ 2024 earnings is pegged at $1.11 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 49.2% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 EPS 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.