Crown Holdings, Inc. (CCK – Free Report) 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.
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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.
Crown Holdings’ Q4 Margins Improve Y/Y
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%.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. price-consensus-eps-surprise-chart | Crown Holdings, Inc. Quote
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.
CCK’s Q4 Segmental Performances
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.
Crown Holdings’ Q4 Cash Flow & Balance Sheet Updates
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.
CCK’s 2024 Performance
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.
Crown Holdings’ 2025 Outlook
The company projects full-year adjusted EPS of $6.60-$7.00 per share. It expects 2025 adjusted free cash flow of $800 million.
CCK Stock’s Price Performance
The company’s shares have gained 14.9% in the past year compared with the industry’s 2.8% growth.
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Crown Holdings’ Zacks Rank
CCK currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of CCK’s Peers in Q4
Silgan Holdings (SLGN – Free Report) reported a record fourth-quarter adjusted EPS of 85 cents, which beat the Zacks Consensus Estimate of 82 cents. This marked a 35% increase from EPS of 63 cents a year ago.
Silgan’s fourth-quarter sales rose 5% year over year to $1.41 billion, surpassing the Zacks Consensus of $1.39 billion. The improvement was attributed to the contribution from the acquisition of Weener Packaging in the Dispensing and Specialty Closures segment, partially offset by a less favorable mix in the Metal Containers segment.
Ball Corporation (BALL – Free Report) reported fourth-quarter 2024 adjusted earnings of 84 cents per share, beating the Zacks Consensus Estimate of 81 cents. The bottom line increased 8% year over year.
Total sales were $2.88 billion, a 0.8% dip from $2.90 billion (the figure is exclusive of the company’s divested aerospace business) in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.98 billion.
Packaging Corporation of America (PKG – Free Report) reported an adjusted EPS of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year. The upside was driven by higher prices and mix, improved volume in both segments, and lower freight and logistics expenses. However, these gains were somewhat offset by an increase in operating expenses scheduled maintenance outage expenses, depreciation expenses and other expenses.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the Zacks Consensus Estimate of $2.13 billion.
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