- Crown Holdings reported third-quarter adjusted earnings per share (EPS) of $1.99, beating the estimate of $1.80 and showing an increase from last year’s $1.73.
- Net sales for the quarter were $3.07 billion, marking a slight increase of 0.2% compared to the previous year and meeting the estimated sales figure.
- Americas beverage revenue grew to $1.37 billion, up 5.6% year-over-year, surpassing the $1.32 billion estimate.
- Europe beverage revenue reached $573 million, a 6.9% increase year-over-year, exceeding the $559.2 million estimate.
- Asia Pacific revenue decreased by 7.5% year-over-year to $284 million, below the estimated $294.8 million.
- Transit packaging revenue fell by 5.1% year-over-year to $526 million, not meeting the $540.5 million estimate.
- Other revenue declined by 14% year-over-year to $323 million, lower than the $345 million estimate.
- Operating income was up 3.3% year-over-year at $444 million.
- Americas beverage operating income saw a substantial increase of 21% year-over-year, reaching $280 million, above the $237.5 million estimate.
- Europe beverage operating income rose 7.5% year-over-year to $86 million, ahead of the $83.4 million estimate.
- Asia Pacific operating income surged 52% year-over-year to $50 million, slightly above the $49 million estimate.
- Transit packaging operating income decreased by 21% year-over-year to $70 million, below the $79.6 million estimate.
- Other income dropped by 27% year-over-year to $27 million, yet exceeded the $20.6 million estimate.
- Adjusted free cash flow increased by 25% year-over-year, totaling $490 million.
- After a $100 million pension contribution, adjusted free cash flow for the year is projected to be at least $750 million, with capital spending capped at $450 million.
- Fourth quarter adjusted diluted EPS is anticipated to be between $1.45 and $1.55.
- Chairman, President, and CEO Timothy J. Donahue highlighted the strong performance across global beverage can businesses, surpassing expectations.
- The company achieved a 10% increase in combined segment income due to favorable manufacturing performance and market diversity.
- For the first nine months of 2024, the company generated $897 million in cash from operating activities and $668 million in adjusted free cash flow.
- The current analyst recommendations include 12 buys, 4 holds, and 0 sells.
Crown Holdings on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following Crown Holdings Inc. and providing valuable insights into the company’s performance. In a recent report titled “Crown Holdings Inc.: Favorable Market Trends & Consumer Shifts Are Major Tailwinds! – Major Drivers,” Baptista Research highlighted a mix of positive and challenging aspects in Crown Holdings‘ recent earnings report. The company reported increased earnings per diluted share, showing promising signs amidst market shifts.
Another report by Baptista Research, “Crown Holdings Inc.: Will The Management Focus on Value over Volume Bear Fruit? – Major Drivers,” discussed the company’s strong first-quarter performance in 2024. Despite a decrease in earnings per diluted share, there were notable positives in various sectors served by Crown Holdings, indicating potential growth opportunities. Value Investors Club also sees promising potential for Crown Holdings as the company focuses on improving cash flow, reducing leverage, and enhancing shareholder returns.
A look at Crown Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores indicate a mixed long-term outlook for Crown Holdings, a company specializing in packaging products for consumer goods. With a score of 3 in Growth and a high score of 5 in Momentum, there appears to be positive potential for the company’s expansion and market performance. However, the lower scores of 2 in Value, Dividend, and Resilience suggest areas of caution for investors.
Crown Holdings, Inc. operates globally, designing and selling packaging solutions for various consumer products. The company’s focus on steel and aluminum cans, along with metal caps and dispensing systems, positions it strongly in the industry. While showing signs of growth and strong market momentum, investors may want to consider the overall balance of factors before making investment decisions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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