Crown Holdings Surprises with Strong Earnings Report
Crown Holdings (CCK) reported quarterly earnings of $1.99 per share, exceeding the Zacks Consensus Estimate of $1.81 per share. This performance marks an increase from last year’s earnings of $1.73 per share. These figures have been adjusted for non-recurring items.
The latest earnings result reflects a surprise of 9.94%. In the previous quarter, analysts forecasted that Crown would earn $1.59 per share, but the company actually delivered $1.81, resulting in a surprise of 13.84%.
Over the past year, Crown has beaten consensus EPS estimates three out of four times. Part of the Zacks Containers – Metal and Glass industry, the company reported revenues of $3.07 billion for the quarter ending September 2024, slightly surpassing the Zacks Consensus Estimate by 0.25%. This revenue is unchanged from the same quarter last year. However, Crown has only met revenue estimates once in the last four quarters.
The future price movement of Crown’s stock will largely rely on management’s insights during the upcoming earnings call, particularly regarding future earnings expectations.
Since the start of 2023, Crown shares have risen approximately 2.1%, while the S&P 500 index has gained 22.5% during the same period.
Looking Ahead: What’s Next for Crown?
Crown’s performance this year raises questions for investors about the stock’s trajectory. The company’s earnings outlook is a significant factor. Tracking consensus earnings expectations as they evolve over time can provide valuable insights for investors.
Research indicates a strong link between short-term stock movements and changes in earnings estimates. Investors can monitor these revisions themselves or utilize tools like the Zacks Rank, which has a proven history of leveraging earnings estimate revisions effectively.
Leading up to this earnings report, the trend for estimate revisions at Crown has been mixed. Following the release, the stock holds a Zacks Rank #3 (Hold), suggesting it may perform in line with the market shortly. The current consensus estimate for the upcoming quarter stands at $1.55 with projected revenues of $2.96 billion, while for the current fiscal year, the expected EPS is $6.16 on $11.85 billion in revenues.
Industry trends also play a crucial role in stock performance. Currently, the Containers – Metal and Glass sector ranks in the top 13% of over 250 Zacks industries. Historical data shows that the top half of Zacks-ranked industries tend to significantly outperform the bottom half.
In contrast, fellow industry player Silgan Holdings (SLGN) has yet to release its quarterly results for September 2024, with an announcement expected on October 30. Analysts predict Silgan will report earnings of $1.24 per share, reflecting a year-over-year increase of 6.9%. The revenue estimate stands at $1.85 billion, an increase of 2.5% compared to the previous year.
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Crown Holdings, Inc. (CCK) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
