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Crown Holdings Beats Q3 Earnings & Revenue Estimates, Raises '24 View

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Crown Holdings, Inc. (CCK - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of $1.99, beating the Zacks Consensus Estimate of earnings of $1.81. The bottom line exceeded the company’s EPS guidance of $1.75-$1.85 and improved 15% year over year.

Including one-time items, CCK reported a loss (from continuing operations) of $1.47 per share in the quarter under review against earnings of $1.33 per share in third-quarter 2023.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales totaled $3.07 billion, up 0.2% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $3.06 billion. The upside was driven by higher global beverage can volumes and food can volumes in North America. This was partially offset by unfavorable foreign currency translation, and lower volumes in Transit Packaging and the beverage can equipment business.

Crown Holdings, Inc. Price, Consensus and EPS Surprise

 

Crown Holdings, Inc. Price, Consensus and EPS Surprise

Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote

Crown Holdings’ Q3 Margins Improve Y/Y

The cost of products sold fell 1.8% year over year to $2.38 billion. On a year-over-year basis, gross profit increased 7.6% to $691 million. The gross margin improved to 22.5% from the year-ago quarter’s 20.9%.

Selling and administrative expenses rose 13.2% year over year to $146 million. Segmental operating income was $472 million compared with the prior-year quarter’s $430 million.

Income from operations in the quarter under review was $444 million, up 18.7% from the year-ago quarter’s $374 million. The upside was driven by improved results in global beverage operations, partially negated by the impact of lower volumes in Transit Packaging and the beverage can equipment business.

CCK’s Q3 Segmental Performances

Net sales in the Americas Beverage segment totaled $1.37 million, up 5.6% year over year. The segment’s operating profit increased 20.7% year over year to $280 million. 

The European Beverage segment’s sales improved 6.9% year over year to $573 million. Operating income was $86 million, marking an improvement from the year-ago quarter’s $73 million. 

The Asia-Pacific segment’s revenues totaled $284 million, down 7.5% year over year. Operating profit was $50 million compared with the prior-year quarter’s $33 million.

Revenues in the Transit Packaging segment totaled $526 million compared with the year-ago quarter’s $554 million. Operating profit fell 21.3% year over year to $70 million.

Crown Holdings’ Q3 Cash Flow & Balance Sheet Updates

CCK had cash and cash equivalents of $1.74 billion at the third-quarter 2024 end, up from $0.81 billion at the end of the prior-year quarter. The company generated $897 million in cash from operating activities in the first nine months of 2024 compared with $832 million in the year-ago comparable period.

The company’s long-term debt increased to $6.67 million as of Sept. 30, 2024, lower than $6.24 million as of Sept. 30, 2023.

CCK’s Q4 & 2024 Outlook

Crown Holdings projects the fourth-quarter 2024 adjusted EPS between $1.45 and $1.55.

Backed by a better-than-expected performance in the third quarter of 2024,  the company raised its yearly outlook. It projects a full-year adjusted EPS of $6.25-$6.35, up from the prior stated $6.00-$6.25.

Crown Holdings’ Share Price Lags Industry

The company’s shares have gained 18.9% in the past year compared with the industry’s 36.8% growth.

 

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CCK’s Zacks Rank

Crown Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Containers Stocks Awaiting Results

Silgan Holdings Inc. (SLGN - Free Report) is scheduled to release its third-quarter 2024 on Oct. 30. The Zacks Consensus Estimate for SLGN’s third-quarter 2024 earnings is pegged at $1.24 per share, suggesting year-over-year growth of 6.9%. 

The Zacks Consensus Estimate for the company’s top line is pegged at $1.85 billion, suggesting an increase of 2.5% from the prior-year figure. SLGN has a trailing four-quarter average surprise of 3.6%.

Ball Corporation (BALL - Free Report) is scheduled to release its third-quarter 2024 on Oct. 31. The Zacks Consensus Estimate for BALL’s third-quarter 2024 earnings is pegged at 87 cents per share, suggesting year-over-year growth of 4.8%.

The Zacks Consensus Estimate for the company’s top line is pegged at $3.17 billion, suggesting a decline of 11.2% from the prior-year reported figure. BALL has a trailing four-quarter average surprise of 6.3%.

AptarGroup, Inc. (ATR - Free Report) is scheduled to release its third-quarter 2024 on Oct. 24. The Zacks Consensus Estimate for ATR’s third-quarter 2024 earnings is pegged at $1.43 per share, suggesting year-over-year growth of 2.9%.

The Zacks Consensus Estimate for the company’s top line is pegged at $932 million, indicating growth of 4.3% from the prior-year reported figure. ATR has a trailing four-quarter average surprise of 7.2%.

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