It has been about a month since the last earnings report for Crown Holdings (CCK Quick QuoteCCK - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Crown due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Crown Holdings Beats on Q2 Earnings, Raises '24 View

Crown Holdings reported second-quarter 2024 adjusted earnings per share (EPS) of $1.81, beating the Zacks Consensus Estimate of $1.59. The bottom line exceeded the company’s EPS guidance of $1.55-$1.65. It improved 8% year over year.

Including one-time items, the company reported earnings of $1.45 per share in the quarter under review compared with $1.31 in second-quarter 2023.

Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion. The downside was caused by lower volumes across most businesses and unfavorable foreign currency translation. Higher beverage can shipments in the Americas Beverage segment offset some impacts.

Costs & Margins

The cost of products sold fell 3.4% year over year to $2.38 billion. On a year-over-year basis, gross profit moved up 2.3% to $661 million. The gross margin improved to 21.7% from the year-ago quarter’s 20.8%.

Selling and administrative expenses rose 1.4% year over year to $150 million. Segmental operating income was $437 million compared with the prior-year quarter’s $414 million. The upside was driven by increased global beverage operations.

Segment Performances

Net sales in the Americas Beverage segment totaled $1.33 billion, up 2.6% year over year. Segmental operating profit increased 15.2% year over year to $243 million. 

The European Beverage segment’s sales rose 5.3% year over year to $560 million. Operating income was $88 million compared with the year-ago quarter’s $69 million.

The Asia-Pacific segment’s revenues totaled $290 million, down 12.7% year over year. Operating profit was $55 million compared with the prior-year quarter’s $38 million.

Revenues in the Transit Packaging segment totaled $550 million compared with the year-ago quarter’s $597 million. Operating profit fell 18% year over year to $73 million.

Cash Flow & Balance Sheet Updates

Crown Holdings had cash and cash equivalents of $1.41 billion at the second-quarter 2024 end, up from $0.55 billion at the end of the prior-year quarter. The company generated $343 million of cash in operating activities in the first half of 2024 compared with $293 million in the year-ago comparable period.

Crown Holdings’ long-term debt decreased to $5.95 billion as of Jun 30, 2024, from $6.99 billion as of Jun 30, 2023.

Outlook

Crown Holdings projects third-quarter 2024 adjusted EPS between $1.75 and $1.85.

Backed by a better-than-expected performance in the first half, the company raised its yearly outlook. It projects full-year adjusted EPS of $6.00-$6.25, up from the prior stated $5.80-$6.20.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, Crown has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Crown has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.