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The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $3.53 billion, indicating a decline of 3.9% from the year-ago quarter’s reported figure. The consensus mark for quarterly earnings is currently17 cents per share, which suggests a 6% dip from the year-ago quarter’s actual. The estimate has remained unchanged over the past 30 days.
Q2 Results
Amcor witnessed a year-over-year decline in second-quarter fiscal 2024 revenues and earnings. While revenues missed the Zacks Consensus Estimate, earnings beat the same. The company has a trailing four-quarter earnings surprise of 6.6%, on average.
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 5.4% decline in overall volumes for the third 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 4.7% 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 third-quarter earnings margin results.
Segment Projections
The Flexibles segment reported volume declines in the last six quarters, impacted by overall weak demand and customer destocking. Considering there has been no major improvement in the quarter under review, our model projects a 4.8% decline in the segment’s overall volumes in the to-be-reported quarter. The price/mix is expected to be a favorable 4.3%. Our sales projection for the Flexibles segment is pegged at $2.68 billion, indicating a 3.8% 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 five quarters. Our model projects a 7.3% drop in volumes for the segment in the fiscal third quarter and a price/mix gain of 5.7%. The sales projection for the segment is $875.6 million, indicating a 0.5% 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 2.
Price Performance
Over the past year, shares of Amcor have fallen 18.9% compared with the industry’s 1.5% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for Eaton’s earnings for the first quarter of 2024 is pegged at $2.28 per share. The estimate projects a 21.3% increase from the year-ago quarter. ETN has a trailing four-quarter average surprise of 4.8%.
The Timken Company (TKR - Free Report) , scheduled to release its first-quarter 2024 results on Apr 30, currently has an Earnings ESP of +0.96% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Timken’s first-quarter 2024 earnings is pegged at $1.50 per share, which indicates a year-over-year decline of 28%. TKR has a trailing four-quarter average surprise of 4.6%.
Chart Industries (GTLS - Free Report) , scheduled to release its first-quarter 2024 on May 3, currently has an Earnings ESP of +9.85% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Chart Industries’ first-quarter 2024 earnings is pegged at $1.88 per share, indicating 33.3% year-over-year growth. GTLS has a trailing four-quarter average surprise of 75.9%.
Image: Bigstock
Will Declining Volumes Impact Amcor's (AMCR) Q3 Earnings?
Amcor Plc (AMCR - Free Report) is scheduled to report third-quarter fiscal 2024 results on Apr 30, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $3.53 billion, indicating a decline of 3.9% from the year-ago quarter’s reported figure. The consensus mark for quarterly earnings is currently17 cents per share, which suggests a 6% dip from the year-ago quarter’s actual. The estimate has remained unchanged over the past 30 days.
Q2 Results
Amcor witnessed a year-over-year decline in second-quarter fiscal 2024 revenues and earnings. While revenues missed the Zacks Consensus Estimate, earnings beat the same. The company has a trailing four-quarter earnings surprise of 6.6%, on average.
Amcor PLC Price and EPS Surprise
Amcor PLC price-eps-surprise | Amcor PLC Quote
Factors to Note
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 5.4% decline in overall volumes for the third 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 4.7% 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 third-quarter earnings margin results.
Segment Projections
The Flexibles segment reported volume declines in the last six quarters, impacted by overall weak demand and customer destocking. Considering there has been no major improvement in the quarter under review, our model projects a 4.8% decline in the segment’s overall volumes in the to-be-reported quarter. The price/mix is expected to be a favorable 4.3%. Our sales projection for the Flexibles segment is pegged at $2.68 billion, indicating a 3.8% 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 five quarters. Our model projects a 7.3% drop in volumes for the segment in the fiscal third quarter and a price/mix gain of 5.7%. The sales projection for the segment is $875.6 million, indicating a 0.5% 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 2.
Price Performance
Over the past year, shares of Amcor have fallen 18.9% compared with the industry’s 1.5% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Eaton Corporation plc (ETN - Free Report) , scheduled to release first-quarter 2024 earnings on Apr 30, currently has an Earnings ESP of +1.95% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eaton’s earnings for the first quarter of 2024 is pegged at $2.28 per share. The estimate projects a 21.3% increase from the year-ago quarter. ETN has a trailing four-quarter average surprise of 4.8%.
The Timken Company (TKR - Free Report) , scheduled to release its first-quarter 2024 results on Apr 30, currently has an Earnings ESP of +0.96% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Timken’s first-quarter 2024 earnings is pegged at $1.50 per share, which indicates a year-over-year decline of 28%. TKR has a trailing four-quarter average surprise of 4.6%.
Chart Industries (GTLS - Free Report) , scheduled to release its first-quarter 2024 on May 3, currently has an Earnings ESP of +9.85% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Chart Industries’ first-quarter 2024 earnings is pegged at $1.88 per share, indicating 33.3% year-over-year growth. GTLS has a trailing four-quarter average surprise of 75.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.