Looking back on industrial packaging stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Avery Dennison (NYSE:AVY) and its peers.
Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.
The 7 industrial packaging stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1%.
While some industrial packaging stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.5% since the latest earnings results.
Avery Dennison (NYSE:AVY)
Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.Avery Dennison reported revenues of $2.19 billion, up 3.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EPS guidance missing analysts’ expectations significantly and a miss of analysts’ adjusted operating income estimates.
“We delivered strong results in 2024, achieving nineteen percent earnings growth,” said Deon Stander, president and CEO.
The stock is down 13.9% since reporting and currently trades at $166.01.
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Best Q4: Crown Holdings (NYSE:CCK)
Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.Crown Holdings reported revenues of $2.90 billion, up 1.6% year on year, in line with analysts’ expectations. The business had a satisfactory quarter with EPS guidance for next quarter exceeding analysts’ expectations but a miss of analysts’ constant currency revenue estimates.
The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $87.35.
Weakest Q4: International Paper (NYSE:IP)
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.International Paper reported revenues of $4.58 billion, flat year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
International Paper delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.8% since the results and currently trades at $55.87.
Silgan Holdings (NYSE:SLGN)
Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.Silgan Holdings reported revenues of $1.41 billion, up 5.3% year on year. This print met analysts’ expectations. However, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates.
The stock is up 2.3% since reporting and currently trades at $54.24.
Graphic Packaging Holding (NYSE:GPK)
Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.Graphic Packaging Holding reported revenues of $2.10 billion, down 6.8% year on year. This number came in 2.6% below analysts' expectations. It was a slower quarter as it also produced a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
The stock is flat since reporting and currently trades at $26.99.
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This content was originally published on Stock Story
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