Yahoo Finance Crown Holdings (CCK) Earnings Beat Estimates in Q1, Dip Y/Y
Crown Holdings, Inc. CCK reported first-quarter 2023 adjusted earnings per share (EPS) of $1.20, beating the Zacks Consensus Estimate of $1.04. The bottom line surpassed the company’s EPS guidance of $1.00-$1.10. However, the same declined 40% year over year.
Including one-time items, the company reported earnings of 85 cents per share in the quarter under review compared with $1.74 per share in the first quarter of 2022.
Net sales in the quarter totaled $2,974 million, down from the year-ago quarter’s $3,162 million. The top line missed the Zacks Consensus Estimate of $3,094 million. The downside was driven by lower volumes across most businesses.
Costs and Margins
The cost of products sold fell 5.3% year over year to $2,411 million. On a year-over-year basis, gross profit moved down 8.5% to $563 million. The gross margin contracted to 18.9% from the year-ago quarter’s 19.4%.
Selling and administrative expenses rose 1.9% year over year to $160 million. Segmental operating income was $320 million in the quarter under review compared with the prior-year quarter’s $383 million.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote
Segmental Performance
Net sales in the Americas Beverage segment totaled $1,261 million, up 2.9% year over year. Segment operating profit rose 8.5% year over year to $178 million.
The European Beverage segment’s sales fell 6.1% year over year to $479 million. Operating income was $45 million compared with the year-ago quarter’s $53 million.
The Asia-Pacific segment’s revenues totaled $338 million, up 18.2% year over year. Operating profit was $36 million compared with the prior-year quarter’s $53 million.
Revenues in the Transit Packaging segment totaled $564 million compared with the year-ago quarter’s $657 million. Operating profit improved 27.9% year over year to $78 million.
Financial Update
Crown Holdings had cash and cash equivalents of $403 million at the end of first-quarter 2023, up from $389 million at the end of the prior-year quarter. The company utilized $235 million in cash in operating activities in the first quarter compared with $301 million in the year-ago quarter.
Crown Holdings’ long-term debt increased to $7,046 million as of Mar 31, 2023, from $5,654 million as of Mar 31, 2022.
Outlook
Crown Holdings projects second-quarter 2022 adjusted EPS between $1.60 and $1.70. For the current year, the company reaffirms adjusted EPS of $6.20-$6.40. The company expects 2023 adjusted annual EBITDA growth of 8-12%.
CCK expects improved operating results in global beverage and Transit Packaging in 2023.
Price Performance
Crown Holdings’ shares have lost 23.6% in the past year compared with the industry’s fall of 29.9%.
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 Worthington Industries, Inc. WOR, The Manitowoc Company, Inc. MTW, and OI Glass Inc. OI. WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.
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