DALLAS, March 12, 2025 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ: BRY) (“Berry” or the “Company”) today announced financial and operating results for the fourth quarter and full year 2024, as well as a quarterly cash dividend of $0.03 per share. Berry has provided a supplemental slide deck on its results, which can be found at www.bry.com. The Company plans to host a conference call and webcast to discuss its fourth quarter and full year 2024 results, as well as its 2025 outlook, at 10:00 a.m. CT, ...

Group 1: Company Performance - Berry Global Group, Inc. (BERY) has experienced growth across all segments, with the Consumer Packaging North America segment achieving a 10% year-over-year revenue increase in the first quarter of fiscal 2025 [1] - The Consumer Packaging International segment saw a 1% organic volume increase, supported by growth in emerging markets and market share gains [1] - The Flexibles segment's revenues rose by 1.8%, attributed to the recovery in European industrial markets [1] Group 2: Investments and Expansion - The company is investing in advanced equipment technologies and design for circularity, which are expected to enhance long-term competitiveness [2] - In April 2023, Berry Global completed a second manufacturing facility and Global Healthcare Center in Sira, Bangalore, aimed at increasing the supply of healthcare solutions in India and South Asia [3] Group 3: Financial Management - Berry Global utilizes cash flow for acquisitions, dividends, and share repurchases, having paid out $36 million in dividends in the first three months of fiscal 2025 [4] - The company acquired CMG Plastics in October 2024, enhancing its capabilities within the Consumer Packaging North America segment [4] - Berry Global increased its dividend by 12.9% to 31 cents per share, translating to an annual dividend of $1.24 [4] Group 4: Cost and Debt Concerns - The company is facing rising operating costs, with a 1.4% year-over-year increase in cost of sales and an 8.3% increase in selling and administrative expenses in the first quarter of fiscal 2025 [6] - Berry Global's high debt level remains a concern, with current and long-term debt at $7.4 billion at the end of the fiscal first quarter [7]

Core Insights - Berry Corporation (NASDAQ: BRY) has appointed a new CFO with significant expertise in company valuation and investment banking [1] - The company has entered into a new debt refinancing agreement, which is expected to enhance future free cash flow (FCF) generation [1] Company Developments - The new CFO's background in investment banking may provide strategic advantages in financial management and valuation [1] - The debt refinancing agreement is anticipated to improve liquidity, potentially leading to better financial performance in the future [1] Market Context - The article highlights the importance of value investments, particularly in small and mid-cap companies, which are often traded at lower earnings multiples [1] - The focus on dividend yield and earnings multiples suggests a strategy aimed at long-term value creation in the investment landscape [1]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks in the market [2]. Company Analysis - Berry (BRY) is currently rated with a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating it is a strong candidate for value investors [4]. - The stock has a P/E ratio of 7.54, significantly lower than the industry average of 13.30, suggesting it may be undervalued [4]. - Over the past year, BRY's Forward P/E has fluctuated between a high of 11.52 and a low of 6.74, with a median of 8.88, indicating variability in its valuation [4]. - BRY's P/CF ratio stands at 1.33, which is attractive compared to the industry's average P/CF of 4.81, further supporting the notion of undervaluation [5]. - The P/CF ratio for BRY has ranged from a high of 3.96 to a low of 1.14 over the past year, with a median of 2.83, reflecting its solid cash outlook [5]. - The combination of these metrics suggests that BRY is likely undervalued and presents an impressive value opportunity in the current market [6].

Group 1 - The article promotes a free two-week trial for the investment group Distressed Value Investing, which provides exclusive research on various companies and investment opportunities [1] - The author, Aaron Chow, has over 15 years of analytical experience and co-founded a mobile gaming company that was acquired by PENN Entertainment, indicating a strong background in both analysis and industry experience [2] - Distressed Value Investing focuses on value opportunities and distressed plays, particularly in the energy sector, highlighting a niche investment strategy [2] Group 2 - The article emphasizes that past performance is not indicative of future results, which is a common disclaimer in investment discussions [3] - It clarifies that no specific investment recommendations are being made, and the views expressed may not represent the entire platform's opinions [3] - The article notes that the analysts contributing to the platform may not be licensed or certified, which is important for understanding the credibility of the analysis provided [3]

Group 1 - Berry Corporation will report its fourth quarter and full year 2024 results on March 12, 2025, after U.S. financial markets close [1] - A conference call and webcast to discuss the results will take place on March 13, 2025, at 11:00 a.m. Eastern Time [2] - The company operates in two business segments: exploration and production (E&P) and well servicing and abandonment [4] Group 2 - Berry's E&P assets are located in California and Utah, characterized by high oil content, with California assets in the San Joaquin basin (100% oil) and Utah assets in the Uinta basin (60% oil and 40% gas) [4] - The company focuses on onshore, low geologic risk, long-lived oil and gas reserves [4] - Berry Corporation is publicly traded on NASDAQ under the ticker BRY [4]

Core Insights - Berry Global Group, Inc. reported adjusted earnings of $1.09 per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of $1, with a year-over-year increase of 5% [1] - Net sales reached $2.39 billion, surpassing the consensus estimate of $2.34 billion, reflecting a 2.2% year-over-year growth driven by higher selling prices and organic volume growth of 2% [1] Segmental Discussion - The Health, Hygiene, and Specialties segment was spun off and merged with Glatfelter Corporation, leading to a focus on higher-value products in the Engineered Materials segment, now renamed Flexibles [2] - International net sales in Consumer Packaging amounted to $885 million, down 3.4% year-over-year, with organic volume growth of 1% [3] - North American Consumer Packaging net sales totaled $769 million, up 10% year-over-year, driven by a 3% growth in volumes [4] - Flexibles segment net sales were $731 million, increasing 1.8% year-over-year, with organic volume growth of 1% [5] Costs & EBITDA - Cost of goods sold increased by 1.4% to $2.9 billion, while selling, general, and administrative expenses rose by 8.3% year-over-year to $223 million [6] - Operating EBITDA was reported at $378 million, up 3.8% year-over-year, although operating income decreased by 7.9% to $152 million [6] Balance Sheet and Cash Flow - At the end of Q1, cash and cash equivalents stood at $1.2 million, down from $1.1 billion at the end of fiscal 2024, with total debt at $8.1 billion [7] - The company used net cash of $372 million in operating activities, compared to $168 million in the previous year, with capital expenditure totaling $134 million [8] Fiscal 2025 Guidance - Berry Global reaffirmed its fiscal 2025 guidance, expecting adjusted earnings in the range of $6.10-$6.60 per share [9] - The company anticipates cash flow from operations between $1.125 billion and $1.225 billion, and free cash flow in the range of $600-$700 million [10]

Core Insights - The focus is on identifying strong stocks using the Zacks Rank system, which emphasizes earnings estimates and revisions [1] - Value investing remains a popular strategy, utilizing fundamental analysis to find undervalued companies [2] - The Style Scores system helps investors identify stocks with specific traits, particularly in the "Value" category [3] Company Analysis: Berry (BRY) - Berry (BRY) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4] - The stock's current P/E ratio is 7.45, significantly lower than the industry average of 13.45, suggesting it may be undervalued [4] - Over the past year, BRY's Forward P/E has fluctuated between 6.74 and 11.52, with a median of 8.96 [4] - Berry's P/CF ratio stands at 1.33, compared to the industry's average of 4.80, further indicating undervaluation [5] - The P/CF ratio for BRY has ranged from 1.14 to 3.96 over the past year, with a median of 2.83 [5] - These metrics suggest that Berry is likely undervalued and has a strong earnings outlook, making it an impressive value stock [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Berry Petroleum (BRY) Analysis - Berry Petroleum (BRY) has shown a four-week price change of 0.9%, indicating growing investor interest [4] - Over the past 12 weeks, BRY's stock gained 1.9%, with a beta of 1.62, suggesting it moves 62% more than the market [5] - BRY has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - BRY is trading at a Price-to-Sales ratio of 0.38, suggesting it is undervalued at 38 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides BRY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Company Performance - Berry Petroleum (BRY) has shown a year-to-date performance increase of approximately 10.2%, outperforming the Oils-Energy sector average return of 7.9% [4] - The Zacks Consensus Estimate for BRY's full-year earnings has increased by 1.7% over the past quarter, indicating a positive earnings outlook [3] - Berry Petroleum holds a Zacks Rank of 2 (Buy), reflecting strong analyst sentiment [3] Industry Context - Berry Petroleum is part of the Oil and Gas - Integrated - United States industry, which has an average loss of 9.4% year-to-date, highlighting BRY's relative strength in this sector [5] - The Oils-Energy group consists of 248 companies, with Berry Petroleum currently ranked 6 in the Zacks Sector Rank [2] - In comparison, Plains GP Holdings (PAGP), another Oils-Energy stock, has returned 20.4% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5]