The market expects Silgan Holdings (SLGN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be re ...

Silgan Holdings Inc. (SLGN) shares scaled a new 52-week high of $157.61 on Monday before closing the session lower at $57.12.SLGN has a market capitalization of $6 billion. The company’s shares have gained 39.9%, outperforming the industry’s growth of 18.7% and the S&P 500 index’s rise of 32.9%. Image Source: Zacks Investment Research What’s Aiding Silgan Holdings’ Stock Performance?Strong Segmental Performances: The Metal Containers segment is gaining from volume increases. The company expects the segment’ ...

Financial Data and Key Metrics Changes - The company reported net sales of approximately $1.8 billion, a decline of 3% from the prior year period, primarily due to the pass-through of lower raw material costs in the Metal Container business [26] - Total adjusted EBIT for Q3 was $206 million, a decrease of 4% year-over-year, attributed to lower pack volumes in the Metal Container segment [27] - Adjusted net income per diluted share was $1.21, a 4% increase from $1.16 in the prior year quarter, driven by higher adjusted EBIT in Dispensing and Specialty Closures and Custom Containers, lower interest costs, and a lower tax rate [27] Business Line Data and Key Metrics Changes - In the Dispensing and Specialty Closures segment, sales increased by 1% year-over-year, driven by a higher volume mix of 2%, primarily due to double-digit volume growth in dispensing products [28] - The Metal Container segment saw a 7% decline in sales compared to the prior year, primarily due to lower raw material costs and less favorable mix, despite a 2% increase in volumes [30] - Custom Containers experienced a 6% increase in sales year-over-year, with a 5% increase in volumes attributed to new business awards [33] Market Data and Key Metrics Changes - Consumer demand for products in the Food and Beverage segment remains strong, with European closures volume growing by a mid-single-digit percentage [12] - The pet food market, which represents approximately half of the Metal Containers business, showed high single-digit percentage growth [16] - The fruit and vegetable market volumes fell below prior year levels, significantly impacting the product mix sold in the quarter [31] Company Strategy and Development Direction - The acquisition of Weener Packaging is expected to enhance the company's innovation pipeline and drive organic growth, margin expansion, and financial accretion for shareholders [8] - The company aims to integrate the Weener business efficiently and expects to deliver significant earnings growth in 2025, with a focus on leveraging synergies from the acquisition [23][48] - The company is positioned to deliver double-digit EPS growth in 2025, even without factoring in improvements in pack volumes [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while consumer purchasing behavior is more cautious due to inflation, preferences for products remain unchanged, and customers are focused on driving sales volume back to normal levels [13] - The company anticipates continued strong demand in the dispensing products segment, with expectations of mid-single-digit growth in Dispensing and Specialty Closures and low single-digit growth in Custom Containers for 2025 [42][60] - Management expressed confidence in the company's ability to navigate the evolving market landscape and capitalize on growth opportunities [22] Other Important Information - The company confirmed its estimate of free cash flow for 2024 at approximately $375 million, with capital expenditures of about $255 million [39] - Adjusted EBIT in the Metal Container segment is expected to be below prior year levels by approximately $35 million to $40 million due to a decline in pack volumes [39] Q&A Session Summary Question: What are your customers telling you for next year regarding volume trends? - Management indicated that customers are returning to focus on volume, particularly in the food and beverage side of Dispensing and Specialty Closures, with expectations of mid-single-digit growth [41] Question: What base needs to be done in terms of integrating the Weener acquisition? - Integration activities have commenced, with full integration and synergies expected to materialize over an 18-month timeline [43] Question: How poor was the pack season relative to historical performance? - Management noted that one large customer reduced their pack plan by 30%, leading to historically low pack volumes, which were the worst seen in many years [50][54] Question: How is the promotional activity performing across different markets? - Management reported mixed results, with successful promotional activity in pet food but less success in the isotonic beverage segment due to inflation impacting consumer purchasing [58] Question: What is the outlook for pricing in 2025? - Management anticipates flat to down pricing in the U.S. market, with stable prices expected in Europe [80]

Silgan Holdings (SLGN) came out with quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.63%. A quarter ago, it was expected that this packaging products supplier would post earnings of $0.87 per share when it actually produced earnings of $0.88, delivering a surprise of 1.15%. Over the last four q ...

Company Overview - Silgan Holdings is a leading supplier of rigid packaging for consumer goods, operating 113 manufacturing facilities across North and South America, Europe, and Asia [11] - The company is the largest metal-container supplier for food products in North America, with a diverse product line that includes steel and aluminum containers for human and pet food, custom-designed plastic containers, and various closures for food and beverage products [11] Investment Ratings - Silgan Holdings currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating strong overall performance [12] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 13.76, which may appeal to value investors [12] Earnings Estimates - For fiscal 2024, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate now at $3.66 per share [12] - Silgan Holdings has demonstrated an average earnings surprise of 3.6%, suggesting potential for positive performance [12] Conclusion - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Silgan Holdings is recommended for investors' consideration [13]

Company Overview - Silgan Holdings is a leading supplier of rigid packaging for consumer goods, operating 113 manufacturing facilities across North and South America, Europe, and Asia [9] - The company is the largest metal-container supplier for food products in North America, with a diverse product line that includes steel and aluminum containers for human and pet food, custom-designed plastic containers, and various closures for food and beverage products [9] Investment Ratings - Silgan Holdings currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating a solid overall performance [10] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 13.72, which may appeal to value investors [10] Earnings Estimates - For fiscal 2024, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0 to $3.66 per share [10] - Silgan Holdings has an average earnings surprise of 3.6%, suggesting a potential for positive earnings performance [10] Conclusion - With a strong Zacks Rank and favorable Value and VGM Style Scores, Silgan Holdings is positioned as a noteworthy option for investors [11]

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Core Points - Silgan Holdings Inc. reported adjusted earnings of 88 cents per share for Q2 2024, exceeding the Zacks Consensus Estimate of 87 cents and reflecting a 6% year-over-year improvement [1] - Total revenues decreased by 3.2% year over year to $1.38 billion, missing the Zacks Consensus Estimate of $1.43 billion due to lower raw material costs [2] - The company expects adjusted EPS for 2024 to be between $3.55 and $3.75, with anticipated volume improvements across all segments [9] Financial Performance - The cost of goods sold decreased by 4.4% year over year to $1.13 billion, while gross profit increased by 2.4% to $256 million, resulting in a gross margin of 18.5% compared to 17.5% in the prior year [3] - Adjusted operating profit for Q2 2024 was $165 million, a 2.8% increase from $161 million in the prior year, with an adjusted operating margin of 12% compared to 11.3% [4] Segmental Performances - The Dispensing and Specialty Closures segment saw revenues increase by 1% year over year to $565 million, with adjusted operating income rising to $93 million from $77 million [5] - The Metal Containers segment experienced an 8% decline in revenues to $651 million, with adjusted operating income falling by 22.7% to $58.5 million [6] - The Custom Containers segment reported revenues of $165 million, up from $156 million, with adjusted operating income increasing to $22.5 million from $18.5 million [7] Cash Flow & Position - At the end of Q2 2024, the company had cash and cash equivalents of $303 million, down from $643 million at the end of 2023, with cash used in operating activities amounting to $527 million in the first half of 2024 [8] Price Performance - Silgan's shares have increased by 11.2% over the past year, outperforming the industry's growth of 10.4% [10]

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.29 on $1.86 billion in revenues for the coming quarter and $3.66 on $6.05 billion in revenues for the current fiscal year. This metal packaging company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of +19.7%. The consensus EPS estimate for the quarter has been revised 0.6% hi ...

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. ...