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Crown Holdings, Inc. (CCK - Free Report) reported fourth-quarter 2019 adjusted earnings per share of $1.04, which surpassed the Zacks Consensus Estimate of 95 cents. The bottom line also improved 4% year over year and came in higher than management’s guidance of 93-98 cents.
Including one-time items, earnings per share improved 60% year over year to 64 cents in the reported quarter.
Net sales in the quarter came in at $2,791 million, up from the year-ago quarter’s $2,734 million. The reported figure also outpaced the Zacks Consensus Estimate of $2,712 million.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Cost of products sold was up 2% year over year to $2,267 million. On a year-over-year basis, gross profit rose 3% to $524 million. Gross margin expanded to 18.8% from the year-ago quarter’s 18.7%.
Selling and administrative expenses were up 3% year over year to $124 million. Segment operating income increased 2% year over year to $285 million during the fourth quarter. Operating margin came in at 10.2%, flat year over year.
Segment Performance
Net sales in the Americas Beverage segment came in at $856 million, up 6.5% from the prior-year quarter’s tally of $804 million. Segment operating profit improved 25% year over year to $148 million.
The European Beverage segment’s sales went up 12.5% year over year to $332 million. Operating income was up 108% year over year to $27 million.
Revenues in the European Food segment fell 4% year over year to $400 million. Segment operating profit declined 39% year over year to $16 million.
The Asia-Pacific segment’s revenues inched up 1.5% year over year to $331 million. Operating profit improved to $51 million from prior-year quarter figure of $49 million.
Revenues in the Transit Packaging segment totaled $549 million compared with $595 million recorded in the year-ago period. Operating profit declined 21% year over year to $63 million.
Financial Update
Crown Holdings had cash and cash equivalents of $607 million at the end of 2019, flat compared with 2018-end. The company generated $1,163 million of cash from operating activities in 2019 compared with the prior-year figure of $571 million.
As of 2019 end, Crown Holdings’ long-term debt decreased to $7,818 million from $8,517 million as of end of the prior year.
2019 Results
Crown Holdings reported adjusted earnings per share of $5.11 in 2019, down 2% from the prior-year reported figure of $5.20. Earnings beat the Zacks Consensus Estimate of $5.02 and management’s guidance of $5.00-$5.05. Including one-time items, the bottom line came in at $3.78, up 15% from $3.28 reported in 2018.
Sales rose 5% year over year to $11.7 billion from the prior-year figure of $11.2 billion. The top line surpassed the Zacks Consensus Estimate of $11.6 billion.
Outlook
Crown Holdings now expects adjusted earnings per share to be $5.40-$5.60 for 2020. The mid-point of the guidance range reflects year-over-year growth of 8%. Beverage can volumes are expected to be up more than 5% in 2020.
Share Price Performance
Over the past year, Crown Holdings’ stock have fallen 10.6% compared with the industry’s decline of 28.4%.
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #4 (Sell).
SPX FLOW has a projected earnings growth rate of 9.1% for 2020. The company’s shares have gained 40.8% in the past year.
Tennant has an estimated earnings growth rate of 4.0% for the ongoing year. In a year’s time, the stock has appreciated 30%.
Cintas has an expected earnings growth rate of 15.7% for the current year. The stock has surged 49.1% over the past year.
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Crown Holdings (CCK) Q4 Earnings & Revenues Beat Estimates
Crown Holdings, Inc. (CCK - Free Report) reported fourth-quarter 2019 adjusted earnings per share of $1.04, which surpassed the Zacks Consensus Estimate of 95 cents. The bottom line also improved 4% year over year and came in higher than management’s guidance of 93-98 cents.
Including one-time items, earnings per share improved 60% year over year to 64 cents in the reported quarter.
Net sales in the quarter came in at $2,791 million, up from the year-ago quarter’s $2,734 million. The reported figure also outpaced the Zacks Consensus Estimate of $2,712 million.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote
Cost and Margins
Cost of products sold was up 2% year over year to $2,267 million. On a year-over-year basis, gross profit rose 3% to $524 million. Gross margin expanded to 18.8% from the year-ago quarter’s 18.7%.
Selling and administrative expenses were up 3% year over year to $124 million. Segment operating income increased 2% year over year to $285 million during the fourth quarter. Operating margin came in at 10.2%, flat year over year.
Segment Performance
Net sales in the Americas Beverage segment came in at $856 million, up 6.5% from the prior-year quarter’s tally of $804 million. Segment operating profit improved 25% year over year to $148 million.
The European Beverage segment’s sales went up 12.5% year over year to $332 million. Operating income was up 108% year over year to $27 million.
Revenues in the European Food segment fell 4% year over year to $400 million. Segment operating profit declined 39% year over year to $16 million.
The Asia-Pacific segment’s revenues inched up 1.5% year over year to $331 million. Operating profit improved to $51 million from prior-year quarter figure of $49 million.
Revenues in the Transit Packaging segment totaled $549 million compared with $595 million recorded in the year-ago period. Operating profit declined 21% year over year to $63 million.
Financial Update
Crown Holdings had cash and cash equivalents of $607 million at the end of 2019, flat compared with 2018-end. The company generated $1,163 million of cash from operating activities in 2019 compared with the prior-year figure of $571 million.
As of 2019 end, Crown Holdings’ long-term debt decreased to $7,818 million from $8,517 million as of end of the prior year.
2019 Results
Crown Holdings reported adjusted earnings per share of $5.11 in 2019, down 2% from the prior-year reported figure of $5.20. Earnings beat the Zacks Consensus Estimate of $5.02 and management’s guidance of $5.00-$5.05. Including one-time items, the bottom line came in at $3.78, up 15% from $3.28 reported in 2018.
Sales rose 5% year over year to $11.7 billion from the prior-year figure of $11.2 billion. The top line surpassed the Zacks Consensus Estimate of $11.6 billion.
Outlook
Crown Holdings now expects adjusted earnings per share to be $5.40-$5.60 for 2020. The mid-point of the guidance range reflects year-over-year growth of 8%. Beverage can volumes are expected to be up more than 5% in 2020.
Share Price Performance
Over the past year, Crown Holdings’ stock have fallen 10.6% compared with the industry’s decline of 28.4%.
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector are SPX FLOW, Inc. (FLOW - Free Report) , Tennant Company (TNC - Free Report) and Cintas Corporation (CTAS - Free Report) . While SPX FLOW flaunts a Zacks Rank #1 (Strong Buy), Tennant and Cintas carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
SPX FLOW has a projected earnings growth rate of 9.1% for 2020. The company’s shares have gained 40.8% in the past year.
Tennant has an estimated earnings growth rate of 4.0% for the ongoing year. In a year’s time, the stock has appreciated 30%.
Cintas has an expected earnings growth rate of 15.7% for the current year. The stock has surged 49.1% over the past year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>