Why Is Beverage Can Maker Crown Stock Soaring On Tuesday?

Crown Holdings Inc CCK shares are trading higher on Tuesday after reporting first-quarter FY25 earnings on Monday after market close.

The company reported a first-quarter revenue increase of 3.7% year-on-year to $2.89 billion, beating the analyst consensus estimate of $2.82 billion.

Adjusted EPS of $1.67 beat the analyst consensus of $1.23.

The revenue increase reflected higher beverage can shipments in the Americas and Europe Beverage and the pass-through of $94 million in higher material costs.

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By Segment, revenue rose 8% in Americas Beverage, climbed 6.2% in European Beverage, remained flat in Asia Pacific, and declined 7.3% in Transit Packaging.

Selling, general and administrative expenses fell 4.8% Y/Y to $140 million.

The operating margin expanded 384 basis points to 12.6%, and operating income for the quarter jumped 48.9% to $365 million.

The company held $778 million in cash and equivalents as of March 31. Inventories at the end of March slipped 5% Y/Y.

“With respect to global trade tensions, the company believes it is well-positioned, as essentially all products sold domestically are produced domestically.  Moreover, for those select raw materials or components that may need to be imported, our contracts contain tariff pass-through provisions,” said Chairman, President and CEO Timothy J. Donahue.

Outlook: Crown expects second-quarter adjusted EPS of $1.80 – $1.90, compared to the Street view of $1.81.

The company raised FY25 adjusted EPS guidance from $6.60 – $7.00 to $6.70 – $7.10 versus an estimate of $6.80.

Crown expects to generate approximately $800 million in adjusted free cash flow in 2025.

Price Action: CCK shares traded higher by 7.67% at $96.67 at the last check on Tuesday.

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