A month has gone by since the last earnings report for Crown Holdings (CCK). Shares have added about 2.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Crown due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Crown Holdings reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.59, beating the Zacks Consensus Estimate of $1.52. The bottom line increased 28% year over year and surpassed the company’s guidance of $1.45-$1.55.
Including one-time items, the company reported earnings from continuing operations of $3.02 per share in the quarter under review compared with earnings of 27 cents in the prior-year quarter.
Net sales in the quarter totaled $2.90 billion, up 1.6% from the year-ago quarter’s $2.86 billion. The upside was driven by increased global beverage can volumes and higher North America food can shipments. However, the reported figure missed the Zacks Consensus Estimate of $2.91 billion.
The cost of products sold increased 0.4% year over year to $2.25 billion. On a year-over-year basis, gross profit increased 6% to $650 million. The gross margin came in at 22.4%, up from the year-ago quarter’s 21.4%.
Selling and administrative expenses grew 1.4% year over year to $147 million. The total segmental operating income was $428 million in the quarter under review compared with the prior-year quarter’s $382 million. The total segment operating margin was 14.7% compared with 13.4% in the prior-year quarter.
Net sales in the Americas Beverage segment totaled $1.32 billion, up 2% year over year. The segment’s operating profit increased 7.8% year over year to $275 million.
The European Beverage segment’s sales rose 16.3% year over year to $456 million. Operating income was $51 million, marking a substantial improvement from the year-ago quarter’s $18 million.
The Asia-Pacific segment’s sales totaled $308 million, down 3.8% year over year. Operating profit was $48 million compared with the prior-year quarter’s $47 million.
Sales in the Transit Packaging segment totaled $511 million compared with the year-ago quarter’s $541 million. Operating profit fell 21.3% year over year to $59 million.
CCK had cash and cash equivalents of $0.92 billion at the end of 2024, down from $1.31 billion at the end of 2023. The company generated $1.19 billion in cash from operating activities in 2024 compared with $1.45 billion in the prior-year period.
Crown Holdings’ long-term debt fell to $6.06 billion at the end of 2024 from $6.69 billion at the prior-year quarter’s end.
The company reported 2024 adjusted EPS of $6.41, beating the Zacks Consensus Estimate of $6.35. The bottom line improved 9% year over year and came above the company’s guidance of $6.25-$6.35.
Including one-time items, the company reported earnings from continuing operations of $3.55 per share in the year under review compared with $3.76 per share in the prior year.
Net sales in the year totaled $11.80 billion, down 1.7% year over year. The reported figure missed the Zacks Consensus Estimate of $11.81 billion.
The company projects full-year adjusted EPS of $6.60-$7.00 per share. It expects 2025 adjusted free cash flow of $800 million.
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 6.67% due to these changes.
At this time, Crown has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Crown has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Crown is part of the Zacks Containers - Metal and Glass industry. Over the past month, Ball (BALL), a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended December 2024 more than a month ago.
Ball reported revenues of $2.88 billion in the last reported quarter, representing a year-over-year change of -15.4%. EPS of $0.84 for the same period compares with $0.78 a year ago.
Ball is expected to post earnings of $0.69 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -7.1%.
Ball has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
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