Yahoo Finance Crown Holdings (CCK) Earnings Top Estimates in Q4, Dip Y/Y
Crown Holdings, Inc. CCK reported fourth-quarter 2022 adjusted earnings per share (EPS) of $1.17, beating the Zacks Consensus Estimate of $1.07. The bottom line slumped 30% year over year but came above the company’s guidance of $1.00-$1.10.
Including one-time items, the company reported earnings from continuing operations of 74 cents per share in the quarter under review against a loss of $7.87 per share in the prior-year quarter.
Net sales in the quarter totaled $3,012 million, down 1.4% from the year-ago quarter’s $3,054 million. The downside was owing to lower volumes in the Transit Packaging businesses and a $92 million negative impact of unfavorable foreign currency translation. These were offset by increased beverage can unit volumes and pass-through of higher material costs. The reported figure missed the Zacks Consensus Estimate of $3,099 million.
Costs and Margins
The cost of products sold increased 1.1% year over year to $2,509 million. On a year-over-year basis, gross profit declined 12.2% to $503 million. The gross margin contracted to 16.7% from the year-ago quarter’s 18.8%.
Selling and administrative expenses were down 5.5% year over year to $137 million. Segment operating income was $292 million in the quarter under review compared with the prior-year quarter’s $357 million. The decline was mainly due to higher inventory levels, lower cost absorption from planned inventory reductions and higher energy prices. The segment operating margin was 9.7% compared with 11.7% in the prior-year quarter.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote
Segment Performance
Net sales in the Americas Beverage segment totaled $1,210 million, up 0.7% year over year. Segment operating profit decreased 2.2% year over year to $177 million.
The European Beverage segment’s sales fell 1.9% year over year to $453 million. Operating income was $15 million, marking a 65.1% slump from the year-ago quarter’s $43 million.
The Asia-Pacific segment’s revenues totaled $395 million, increasing 3.7% year over year. Operating profit was $29 million compared with the prior-year quarter’s $51 million.
Revenues in the Transit Packaging segment totaled $588 million, down 15% from the year-ago quarter’s $692 million. Operating profit declined 14.5% year over year to $71 million.
Financial Update
Crown Holdings had cash and cash equivalents of $550 million at the end of 2022, up from $531 million at the end of 2021. The company generated $803 million in cash from operating activities in 2022 compared with $905 million in the prior-year period.
Crown Holdings’ long-term debt rose to $6,792 million at the end of 2022, up from $6,052 million at the prior-year quarter’s end.
The company repurchased 6.4 million of its shares for $722 million. The company has remaining authorization to repurchase an additional $2.3 billion through December 2024.
2022 Performance
The company reported 2022 adjusted earnings per share (EPS) of $6.75, beating the Zacks Consensus Estimate of $6.65. The bottom line slumped 12% year over year but came above the company’s guidance of $6.60-$6.70.
Including one-time items, the company reported earnings from continuing operations of $5.99 per share in the quarter under review against a loss of $3.89 per share in the prior-year quarter.
Net sales in the year totaled $12.94 billion, up 13.6% from 2021’s $11.39 billion. The reported figure missed the Zacks Consensus Estimate of $13.03 billion.
Outlook
Crown Holdings projects first-quarter 2023 adjusted EPS between $1.00 and $1.10. For 2023, the company anticipates adjusted EPS of $6.20-$6.40.
Price Performance
Crown Holdings’ shares have declined 23.6% in the past year compared with the industry’s fall of 28.4%.
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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 O-I Glass, Inc OI, Tenaris TS and Deere & Company DE. OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 66.9% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.
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