Core Insights - Amcor reported solid second quarter results for fiscal 2026, reaffirming its guidance for the year, with strong adjusted EPS growth driven by the Berry acquisition and disciplined execution [1][2][3] Financial Performance - For the three months ended December 31, 2025, net sales reached $5,449 million, a 68% increase year-over-year, primarily due to the Berry acquisition [1][2] - Adjusted EPS for the quarter was $0.86, up 7%, while adjusted EBITDA was $826 million, reflecting an 83% increase [1][2] - Free cash flow for the quarter was $289 million, including $69 million in acquisition-related costs [1][2] Fiscal Guidance - The company reaffirmed its fiscal 2026 guidance, expecting free cash flow between $1.8 billion and $1.9 billion and adjusted EPS in the range of $4.00 to $4.15, indicating a constant currency growth of 12% to 17% [1][2][3] Segment Performance - In the Global Flexible Packaging Solutions segment, net sales for the December 2025 quarter were $3,188 million, a 23% increase year-over-year on a constant currency basis [2][3] - The Global Rigid Packaging Solutions segment saw net sales of $2,264 million, a 200% increase year-over-year on a constant currency basis, driven by the Berry acquisition [3][4] Cost Management - Adjusted EBIT for the three months ended December 31, 2025, was $603 million, a 62% increase year-over-year, with synergy benefits from the Berry acquisition contributing approximately $50 million [1][2][3] - The company reported a GAAP net income of $177 million for the quarter, including acquisition-related costs [1][2] Dividend Declaration - Amcor declared a quarterly dividend of $0.65 per share, reflecting confidence in its growth opportunities and ability to generate significant free cash flow [2][3]

Key Takeaways AMCR will report Q2 FY26 results on Feb. 3, with revenues seen at $5.55B and earnings of 83 cents per share.AMCR's outlook reflects a major revenue boost from the Berry Global merger, offsetting volume pressure.AMCR's segments face volume declines, cushioned by price/mix gains, currency benefits and acquisitions.Amcor Plc (AMCR) is scheduled to report second-quarter fiscal 2026 results on Feb. 3, after the closing bell.The Zacks Consensus Estimate for AMCR’s fiscal second-quarter revenues is p ...

Industry Overview - The Zacks Containers - Paper and Packaging industry is experiencing weak demand due to lower consumer spending amid inflation, leading to volume declines and inventory reductions [4][5] - The industry comprises companies that manufacture various packaging products, serving multiple markets including food, beverage, healthcare, and industrial sectors [3] Current Challenges - Elevated inflation and higher interest rates have dampened consumer spending, impacting demand for packaging in sectors like housing and industrial activities [4] - Companies are facing margin pressure from higher material, labor, and transportation costs, as well as tariffs, prompting them to implement pricing strategies and cost-reduction actions [4][6] Growth Catalysts - E-commerce growth is a significant catalyst for the industry, with increasing online shopping driving demand for durable packaging solutions [5] - The industry has over 60% exposure to consumer-oriented markets, ensuring stable demand for packaging solutions across economic cycles [5] Eco-Friendly Trends - There is a rising preference for environmentally friendly biodegradable packaging materials, driven by consumer awareness of environmental issues [6] - Companies are adopting innovative technologies and incorporating recycled content into their production methods to meet this demand [6] Industry Performance - The Zacks Containers - Paper and Packaging industry currently ranks 198 out of 244 Zacks industries, indicating weak prospects in the near term [7][8] - Over the past year, the industry has underperformed compared to its sector and the S&P 500, declining 7.8% while the sector grew by 16.7% and the S&P 500 gained 18% [9] Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA ratio of 12.92X, lower than the S&P 500's 19.00X and the Industrial Products sector's 20.04X [12] - Historically, the industry has traded between 9.78X and 15.06X over the last five years, with a median of 11.57X [17] Company Highlights - **Amcor plc (AMCR)**: Expects $260 million in pre-tax synergies from its merger with Berry Global Group, projecting 12% adjusted EPS accretion by fiscal 2026 [18] - **Karat Packaging (KRT)**: Anticipates $20 million in annual revenues from new paper bag supplies, focusing on eco-friendly innovations to strengthen its market position [22] - **Sonoco Products Company (SON)**: Completed the sale of its ThermoSafe business, streamlining operations and expecting $100 million in run-rate synergies from its acquisition of Eviosys [25]

Core Viewpoint - Amcor plc, a packaging company, has shown mixed performance in the market, with significant revenue growth but underperformance compared to broader indices over the past year [2][4]. Company Overview - Amcor plc is valued at a market cap of $20.4 billion and is based in Zurich, Switzerland, focusing on flexible and rigid packaging products for various markets including food and beverage, healthcare, and personal care [1]. Market Performance - Over the past 52 weeks, Amcor's shares have declined by 10%, while the S&P 500 Index has increased by 15.4%. However, year-to-date, Amcor's stock is up 5.3%, outperforming the S&P 500's 1.8% return [2]. - Amcor has also underperformed compared to the Invesco S&P 500 Equal Weight Materials ETF, which rose by 9.8% over the past year [3]. Financial Results - In Q1, Amcor reported a total revenue increase of 71.3% year over year to $5.7 billion, attributed to the acquisition of Berry Global and strong volume growth, although it fell short of analyst expectations by 1.4% [4]. - The adjusted EPS for the same period improved by 19.1% to $0.19, meeting consensus estimates [4]. Future Earnings Expectations - For fiscal 2026, analysts project Amcor's EPS to grow by 13.2% year over year to $4.02, with a mixed earnings surprise history [5]. Analyst Ratings - Among 16 analysts covering Amcor, the consensus rating is a "Moderate Buy," with 11 "Strong Buy" and five "Hold" ratings [6]. - The mean price target is $52.50, indicating a 19.6% premium from current levels, while the highest price target of $60 suggests a potential upside of 36.7% [7].

Core Viewpoint - Amcor plc will announce its fiscal 2026 second quarter and half year results on February 3, 2026, after the US market closes [1] Group 1: Financial Results Announcement - The results will cover the three and six month periods ended December 31, 2025 [1] - A conference call and webcast to discuss the results will take place at 5:30 PM US Eastern Standard Time on February 3, 2026 [2] - Access to the webcast and supporting materials will be available via the Investors section of Amcor's website [2] Group 2: Company Overview - Amcor is a global leader in responsible consumer packaging and dispensing solutions across various materials for nutrition, health, beauty, and wellness categories [3] - The company generates $23 billion in annualized sales from operations across over 400 locations in more than 40 countries, supported by a workforce of over 75,000 people [3] - Amcor focuses on product innovation and sustainability to address packaging challenges globally, producing flexible packaging, rigid packaging, cartons, and closures [3]

Core Viewpoint - Amcor plc has successfully completed a 1-for-5 reverse stock split, which was approved by shareholders at the annual general meeting held on November 6, 2025 [1] Company Summary - Amcor plc is recognized as a global leader in developing and producing responsible packaging solutions [1]

Core Viewpoint - Amcor PLC has executed a reverse stock split to enhance shareholder value while demonstrating strong financial performance and consistent dividend growth, making it an attractive investment opportunity for income and growth investors [1][5]. Financial Performance - Amcor's revenue has grown from $4 billion in fiscal year 2017 to $15 billion in fiscal year 2025, reflecting a compound annual growth rate of 15.8% [2][5]. - The company is recognized as a dividend aristocrat, having increased its dividend for seven consecutive years, indicating reliability in providing consistent returns to shareholders [2]. Stock Performance - The current stock price for AMCR is $8.82, with a recent change of $0.07, or 0.8%, from the previous trading session [3]. - Over the past year, AMCR has experienced significant volatility, with a high of $52.25 and a low of $8.80 [3]. Trading Activity - Today's trading volume for AMCR is 15.31 million shares, indicating active investor interest despite the recent reverse stock split [4][5].

Core Viewpoint - Amcor PLC is a leading player in the global packaging industry, demonstrating strong financial performance and commitment to shareholder value through consistent dividend increases and strategic moves like a reverse stock split [1][2][5]. Financial Performance - Amcor's revenue has grown significantly from $4 billion in fiscal year 2017 to $15 billion in fiscal year 2025, reflecting a compound annual growth rate of 15.8% [3][5]. - The recent merger with Berry has positioned Amcor as the largest consumer packaging company globally, enhancing its economies of scale [3]. Stock Performance - Currently, Amcor's stock is trading at $8.65, with a slight decrease of 0.17% today, and has fluctuated between $8.61 and $8.67 [4]. - The stock has a 52-week high of $10.45 and a low of $7.67, indicating some volatility in the market [4]. - Amcor appears undervalued, trading at 10 times its projected free cash flow for fiscal year 2026, suggesting an attractive valuation for investors [4][5]. Corporate Actions - On January 15, 2026, Amcor will implement a reverse stock split, exchanging 1 share for every 5 shares, aimed at increasing the stock price by reducing the number of shares outstanding [2][5]. - The company has increased its dividend for seven consecutive years, appealing to income growth investors [2].

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Core Insights - The article discusses the appeal of dividend stocks, particularly those with high yields, while cautioning that unusually high yields may indicate underlying issues with the stock price [1][4] - It emphasizes the benefits of dividend growth investing, which focuses on future income potential rather than immediate high yields [2][3] Dividend Stock Performance - Historical data indicates that high-dividend stocks have outperformed the broader market during periods of high inflation from 1940 to 2021, suggesting a strong performance in certain economic environments [4] - Research from July 1928 to June 2019 shows that high-dividend yield portfolios outperformed low-yield and zero-yield portfolios by 199 basis points and 330 basis points, respectively [5] Methodology for Stock Selection - The article outlines a methodology for selecting dividend stocks, focusing on companies with market caps of at least $2 billion and dividend yields above 6% as of January 9 [7] Company Highlights - **Amcor plc (NYSE:AMCR)**: - Dividend Yield as of January 9: 6.01% - Analyst upgrades indicate strong earnings growth potential through fiscal 2027, driven by synergies and debt reduction [10] - The company is moving forward with a 1-for-5 reverse stock split, expected to take effect on January 15, 2026 [11][12] - **United Parcel Service, Inc. (NYSE:UPS)**: - Dividend Yield as of January 9: 6.07% - Analyst raises price target and reassures that dividend concerns are overblown, with expectations for margin improvement and growth in higher-return markets [13] - Despite a nearly 20% drop in shares in 2025, UPS maintains a strong commitment to its dividend, having consistently increased it since going public in 1999 [14][15]