Crown Holdings Beats on Q2 Earnings, Raises '24 View

Crown Holdings, Inc. CCK reported second-quarter 2024 adjusted earnings per share of $1.81, beating the Zacks Consensus Estimate of $1.59. The bottom line exceeded the company's EPS guidance of $1.55-$1.65. It improved 8% year over year.

Including one-time items, the company reported earnings of $1.45 per share in the quarter under review compared with $1.31 in second-quarter 2023.

Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion. The downside was caused by lower volumes across most businesses and unfavorable foreign currency translation. Higher beverage can shipments in the Americas Beverage segment offset some impacts.

Costs & Margins

The cost of products sold fell 3.4% year over year to $2.38 billion. On a year-over-year basis, gross profit moved up 2.3% to $661 million. The gross margin improved to 21.7% from the year-ago quarter's 20.8%.

Selling and administrative expenses rose 1.4% year over year to $150 million. Segmental operating income was $437 million compared with the prior-year quarter's $414 million. The upside was driven by increased global beverage operations.

Segment Performances

Net sales in the Americas Beverage segment totaled $1.33 billion, up 2.6% year over year. Segmental operating profit increased 15.2% year over year to $243 million. 

The European Beverage segment's sales rose 5.3% year over year to $560 million. Operating income was $88 million compared with the year-ago quarter's $69 million.

The Asia-Pacific segment's revenues totaled $290 million, down 12.7% year over year. Operating profit was $55 million compared with the prior-year quarter's $38 million.

Revenues in the Transit Packaging segment totaled $550 million compared with the year-ago quarter's $597 million. Operating profit fell 18% year over year to $73 million.

Cash Flow & Balance Sheet Updates

Crown Holdings had cash and cash equivalents of $1.41 billion at the second-quarter 2024 end, up from $0.55 billion at the end of the prior-year quarter. The company generated $343 million of cash in operating activities in the first half of 2024 compared with $293 million in the year-ago comparable period.

Crown Holdings' long-term debt decreased to $5.95 billion as of Jun 30, 2024, from $6.99 billion as of Jun 30, 2023.

Outlook

Crown Holdings projects third-quarter 2024 adjusted EPS between $1.75 and $1.85.

Backed by a better-than-expected performance in the first half, the company raised its yearly outlook. It projects full-year adjusted EPS of $6.00-$6.25, up from the prior stated $5.80-$6.20.

Price Performance

Crown Holdings' shares have lost 13.4% in the past year compared with the industry's fall of 1.1%.

Image Source: Zacks Investment Research

Zacks Rank

Crown Holdings currently carries a Zacks Rank #4 (Sell).

Containers Stocks Awaiting Results

Silgan Holdings Inc. SLGN is scheduled to release its second-quarter 2024 on Jul 31. The Zacks Consensus Estimate for SLGN's second-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 $1.43 billion, suggesting an increase of 0.3% from the prior-year figure. SLGN has a trailing four-quarter average surprise of 1.1%.

Ball Corporation BALL is scheduled to release its second-quarter 2024 on Aug 1. The Zacks Consensus Estimate for BALL's second-quarter 2024 earnings is pegged at 73 cents per share, suggesting year-over-year growth of 19.7%.

The Zacks Consensus Estimate for the company's top line is pegged at $3.07 billion, suggesting a decline of 13.8% from the prior-year figure. BALL has a trailing four-quarter average surprise of 6.8%.

AptarGroup, Inc. ATR is scheduled to release its second-quarter 2024 on Jul 25. The Zacks Consensus Estimate for AptarGroup's second-quarter 2024 earnings is pegged at $1.36 per share, suggesting year-over-year growth of 10.6%.

The Zacks Consensus Estimate for the company's top line is pegged at $925.4 million, suggesting growth of 3.3% from the prior-year figure. ATR has a trailing four-quarter average surprise of 9.3%.

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