Amcor plc (AMCR) stands tall in the packaging industry with a market cap of $13.7 billion. Headquartered in Zurich, Switzerland, this company is known for its responsible packaging solutions, catering to sectors like food, beverage, pharmaceuticals, and personal care. Amcor’s presence spans both developed and emerging markets, benefiting from its substantial scale and distribution capabilities.
Performance Snapshot
As a large-cap stock, Amcor meets the criteria for companies valued at $10 billion or above. It operates in two main segments: Flexibles and Rigid Packaging. Their product offerings include flexible films, rigid containers, and specialty closures. A commitment to sustainability drives Amcor to create lightweight, recyclable, and reusable packaging, ultimately enhancing brand distinction for its customers.
Recent Stock Movements
Despite its solid standing, the company’s stock has dropped 17.8% from its 52-week high of $11.48, reached on September 27. Over the past three months, Amcor’s shares fell by 16.8%, while the Nasdaq Composite ($NASX) saw an 8.8% increase in the same timeframe.
Looking at a longer timeline, AMCR has decreased by 3.8% in the last six months, contrasting with a 10.4% increase in the NASX. Additionally, Amcor’s stock has slipped 2.9% over the past year, not faring well compared to the NASX’s significant 30.6% gains.
Trading patterns reveal that AMCR has been below its 50-day moving average since late October and has remained beneath its 200-day moving average since early December.
Q1 Earnings Report Insights
In its recent Q1 earnings report, Amcor met adjusted EPS expectations of $0.16. However, the stock took a hit, dropping 7.8% after the announcement due to lower-than-anticipated revenue of $3.4 billion. The revenue gap stemmed mainly from decreased pass-through costs and negative impacts from foreign exchange rates. The Rigid Packaging segment underperformed, with an 8.5% decline in revenue and a 4% drop in volume, both exceeding analysts’ predictions for declines. Moreover, rising selling, general and administrative (SG&A) expenses and increasing net debt have raised concerns about financial risks.
Competitive Landscape
On a competitive note, Berry Global Group, Inc. (BERY) has outperformed Amcor, recording a 10.6% gain over the past six months. However, in a year-long perspective, Berry’s shares have decreased by 4.2%, a slight drop compared to Amcor’s decline.
Analyst Outlook
Despite the hurdles, analysts maintain a moderately optimistic view on Amcor’s future. Among the ten analysts covering the stock, there is a consensus rating of “Moderate Buy,” particularly since it is currently trading below the mean price target of $11.22.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
