Latest news with #CrownHoldings
Yahoo
a day ago
- Business
- Yahoo
Crown Holdings Inc (CCK) Q2 2025 Earnings Call Highlights: Strong Performance and Raised ...
Earnings Per Share (EPS): $1.81 per share, up from $1.45 per share in the prior year quarter. Adjusted Earnings Per Share: $2.15, compared to $1.81 in the prior year quarter. Net Sales: Increased by 3.6% compared to the prior year quarter. Segment Income: $476 million, up from $437 million in the prior year quarter. Free Cash Flow: Improved to $387 million for the six months ending June 30, from $178 million in the prior year. Shareholder Returns: $269 million returned to shareholders in the first six months. Global Beverage Segment Income: Increased by 9% in the quarter. Americas Beverage Segment Income: Reported a 10% increase. European Beverage Unit Volumes: Advanced 6% in the quarter. North American Food Demand: Increased by 9% in the second quarter. Full Year Adjusted EPS Guidance: Raised to $7.10 to $7.50 per share. Full Year Adjusted Free Cash Flow Estimate: Approximately $900 million. Net Leverage: Expected to be approximately 2.5 times by the end of 2025. Warning! GuruFocus has detected 7 Warning Signs with FRA:7PI. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Crown Holdings Inc (NYSE:CCK) reported a strong quarter with earnings per share increasing to $1.81 from $1.45 in the prior year, and adjusted earnings per share rising to $2.15 from $1.81. Net sales increased by 3.6% year-over-year, driven by higher shipments in North American beverage, European beverage, and North American food can volumes. Free cash flow improved significantly to $387 million from $178 million in the prior year, reflecting higher income and lower capital spending. The company raised its full-year adjusted EPS guidance to a range of $7.10 to $7.50, indicating confidence in continued strong performance. Crown Holdings Inc (NYSE:CCK) returned $269 million to shareholders in the first six months, demonstrating a commitment to shareholder value. Negative Points Income in the Asia Pacific region declined due to high single-digit volume decreases in Southeast Asian markets, impacted by tariffs affecting consumer confidence. The transit business remains cautious about the potential impact of tariffs, with estimated exposure of approximately $25 million. The Mexican market is experiencing a slowdown, potentially due to economic factors and tariffs, affecting beverage can volumes. The company took a restructuring charge, including a write-down of assets in a Chinese plant and severance costs, indicating challenges in certain areas. There is concern about the potential impact of tariffs on consumer and industrial activity, which could affect future performance. Q & A Highlights Q: Your 3Q guidance implies EPS, I think, kind of flattish year-over-year. Can you talk about expectations for the segments for 3Q or trends at a high level? A: The third quarter last year was exceptionally strong, with a combined EBITDA of about $1.5 billion in the second half. Despite challenging comps, we expect improvement in European beverage and North American food, with Americas beverage business potentially around last year's numbers. North American volumes are expected to be in the zero to 2% range, similar to the second quarter's 1% growth. The businesses and plants are performing well, and we have seen a significant step change in earnings and EBITDA over the last couple of years. Timothy Donahue, CEO Q: Can you talk about the strength in nonreportable segments and any potential pull forward around tariffs? A: The strength is partly due to investments in the North American food business and relatively easy comps from last year. There might be a slight pull forward, but we are also seeing consumers becoming more cautious with their spending, leading to more at-home consumption. Additionally, our beverage can equipment business is seeing some growth as demand for beverage cans increases globally. Timothy Donahue, CEO Q: Could you discuss your conversations with customers in Europe and how that impacts your intermediate to long-term outlook? A: European customers remain bullish on the need for more cans due to business growth and a shift towards more sustainable packaging like aluminum cans. Despite potential soft spots, the outlook is positive with ongoing projects like modernizing a facility in Greece and potentially adding a second line in Southern Europe. Historically, Europe has shown a 3% to 5% CAGR, which is strong growth for the can industry. Timothy Donahue, CEO Q: How are your customers in North America responding to tariffs and other economic factors? A: Despite high aluminum costs, our contracts allow for pass-through, and consumers have not backed off from purchasing beverage cans. Promotions continue, and the market is performing well, potentially better than expected. We maintain our guidance of zero to 2% growth, with the market possibly doing better than that. Timothy Donahue, CEO Q: Can you provide more color on the restructuring charge for the quarter and its impact on Signode? A: The restructuring charge was primarily due to writing down the value of assets in a Chinese plant and severance costs in Signode. We expect to see benefits from these actions starting at the end of this year into next year. Signode performed better than expected, and we hope to maintain that level in the third quarter, with some uncertainty due to tariffs. Timothy Donahue, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Crown Holdings Q2 Earnings & Revenues Beat Estimates, '25 View Raised
Crown Holdings, Inc. CCK reported second-quarter 2025 adjusted earnings per share (EPS) of $2.15, beating the Zacks Consensus Estimate of $1.86. The bottom line exceeded the company's EPS guidance of $1.80-$1.90. It improved 19% year over one-time items, the company reported earnings of $1.56 per share in the quarter under review compared with $1.45 in second-quarter sales totaled $3.15 billion, up 3.6% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $3.14 billion. The upside was driven by strong performance in Americas Beverage, European Beverage and the North American Tinplate businesses. Crown Holdings, Inc. Price, Consensus and EPS Surprise Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote Crown Holdings' Q2 Margins Up Y/Y The cost of products sold rose 2.4% year over year to $2.44 billion. On a year-over-year basis, gross profit moved up 7.9% to $713 million. The gross margin improved to 22.6% from the year-ago quarter's 21.7%.Selling and administrative expenses rose 7.3% year over year to $161 million. Segmental operating income was $476 million compared with the prior-year quarter's $437 million. CCK's Segment Performances in Q2 Net sales in the Americas Beverage segment totaled $1.40 billion, up 6% year over year. Segmental operating profit increased 10.3% year over year to $268 European Beverage segment's sales rose 13.4% year over year to $635 million. Operating income was $97 million compared with the year-ago quarter's $88 Asia-Pacific segment's revenues totaled $256 million, down 11.7% year over year. Operating profit was $50 million compared with the prior-year quarter's $55 in the Transit Packaging segment totaled $526 million compared with the year-ago quarter's $555 million. Operating profit fell 1.4% year over year to $72 million. Crown Holdings' Cash Flow & Balance Sheet Updates Crown Holdings had cash and cash equivalents of $0.94 billion at the end of second-quarter 2025, down from $1.41 billion at the end of the prior-year quarter. The company generated $463 million of cash in operating activities in the first half of 2025 compared with $343 million in the year-ago comparable Holdings' long-term debt decreased to $5.62 billion as of June 30, 2025, from $5.95 billion as of June 30, 2024. CCK Raises 2025 EPS Outlook Crown Holdings expects adjusted EPS to be between $1.95 and $2.05 in the third quarter of 2025. Adjusted EPS in the third quarter of 2024 was $ by the solid performance in the first quarter and upbeat demand, the company now projects full-year adjusted EPS to be $7.10-$7.50 compared with its prior expectation of $6.70-$7.10. The midpoint of the revised guidance implies year-over-year growth of 14%.CCK expects 2025 adjusted free cash flow of $900 million. Crown Holdings Stock's Price Performance The company's shares have gained 36.8% in the past year against the industry's 12.4% decline. Image Source: Zacks Investment Research CCK's Zacks Rank Crown Holdings currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Packaging Products Stocks Awaiting Results Ball Corporation BALL is scheduled to release its second-quarter 2025 results on Aug. 5. The Zacks Consensus Estimate for BALL's second-quarter 2025 earnings is pegged at 87 cents per share, suggesting year-over-year growth of 17.6%.The Zacks Consensus Estimate for Ball Corp.'s top line is pegged at $3.15 billion, suggesting growth of 6.6% from the prior-year figure. Ball Corp. has a trailing four-quarter average surprise of 4.9%.Silgan Holdings Inc. SLGN is scheduled to release its second-quarter 2025 results on July 30. The Zacks Consensus Estimate for SLGN's second-quarter 2025 earnings is pegged at $1.03 per share, suggesting year-over-year growth of 17%.The Zacks Consensus Estimate for Silgan Holdings' top line is pegged at $1.53 billion, suggesting an increase of 11.1% from the prior-year figure. Silgan Holdings has a trailing four-quarter average surprise of 2.1%.AptarGroup, Inc. ATR is scheduled to release its second-quarter 2025 results on July 31. The Zacks Consensus Estimate for AptarGroup's second-quarter 2025 earnings is pegged at $1.58 per share, suggesting year-over-year growth of 15.3%. The Zacks Consensus Estimate for the company's top line is pegged at $946.1 million, suggesting growth of 3.9% from the prior-year figure. ATR has a trailing four-quarter average surprise of 7.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report AptarGroup, Inc. (ATR) : Free Stock Analysis Report Ball Corporation (BALL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Why Crown Holdings (CCK) Stock Is Trading Up Today
What Happened? Shares of metal packaging products manufacturer Crown Holdings (NYSE:CCK) jumped 3.6% in the morning session after the company reported second-quarter earnings that surpassed analyst expectations and raised its full-year guidance. The company announced adjusted earnings per share of $2.15, a 19% increase from the prior year and well ahead of the consensus estimate of $1.87. Revenue for the quarter also topped forecasts, coming in at $3.15 billion, driven by strong performance in its beverage and North American tinplate businesses. Buoyed by the strong first-half results, Crown lifted its full-year adjusted earnings per share forecast to a range of $7.10 to $7.50, up from the previous estimate of $6.70 to $7.10. The company also increased its projection for adjusted free cash flow, which is the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. The positive report prompted a Buy rating reiteration from analysts at both Citi and Morgan Stanley. After the initial pop the shares cooled down to $105.56, up 0.7% from previous close. Is now the time to buy Crown Holdings? Access our full analysis report here, it's free. What Is The Market Telling Us Crown Holdings's shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock gained 10% on the news that the company reported strong second-quarter earnings. EPS came in ahead of expectations, though revenue missed by a narrow margin. The topline benefited from "higher global beverage can shipments offset primarily by the pass through of $94 million in lower material costs and unfavorable foreign currency of $13 million." Adding to the positive aspect, free cash flow came in positive, and gross margin ticked up slightly. Overall, it was a strong quarter for the company, with ample reasons for investors to stay positive. Crown Holdings is up 30% since the beginning of the year, and at $105.56 per share, it is trading close to its 52-week high of $108.12 from July 2025. Investors who bought $1,000 worth of Crown Holdings's shares 5 years ago would now be looking at an investment worth $1,492. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Business Insider
2 days ago
- Business
- Business Insider
Crown Holdings price target raised to $130 from $125 at UBS
UBS analyst Joshua Spector raised the firm's price target on Crown Holdings (CCK) to $130 from $125 and keeps a Buy rating on the shares. The company delivered another beat and raise that the firm expects exceeds investor expectations, the analyst tells investors in a research note. The firm added that it believes Crown remains conservative on expectations for the second half, and the company still raised its adjusted EPS guide for the year at roughly 40c above the midpoint, which is about 10c about the beat. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Crown Holdings Raises Guidance, Claims Strong Performance
Crown Holdings CCK -1.39%decrease; red down pointing triangle raised its full-year guidance, with the manufacturer saying it had strong first half performance as it continues to monitor the potential impacts of tariffs. The Tampa, Fla.-based maker of aluminum cans and aerosol containers said second-quarter profit rose to $181 million, or $1.56 a share, from $174 million, or $1.45 cents a share, a year earlier.
