The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how industrial packaging stocks fared in Q1, starting with Crown Holdings (NYSE:CCK).
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 8 industrial packaging stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 2.2%. while next quarter's revenue guidance was 2.1% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the industrial packaging stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.9% on average since the previous earnings results.
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 $2.78 billion, down 6.4% year on year, falling short of analysts' expectations by 5.1%. It was a weaker quarter for the company with in line with analysts' constant currency revenue estimates.
Commenting on the quarter, Timothy J. Donahue, Chairman, President and Chief Executive Officer, stated, "The Company began the year with strong performances in each of the beverage can businesses. Americas Beverage, European Beverage and Asia Pacific combined segment incomes advanced 11% over the prior year's first quarter. Global beverage shipments increased 2.5% over the prior year first quarter led by 7% growth in North America and 5% growth in Europe. Transit Packaging performed as expected during the period with demand anticipated to improve in the back half of the year.
The stock is down 11.3% since reporting and currently trades at $71.9.
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Best Q1: Sealed Air (NYSE:SEE) Founded in 1960, Sealed Air Corporation (NYSE: NYSE:SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Sealed Air reported revenues of $1.33 billion, down 1.4% year on year, outperforming analysts' expectations by 3.8%. It was a very strong quarter for the company with an impressive beat of analysts' volume and earnings estimates.
Sealed Air scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $34.02.
Weakest Q1: 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 $1.32 billion, down 7.1% year on year, falling short of analysts' expectations by 4.1%. It was a weak quarter for the company with a miss of analysts' organic revenue estimates.
As expected, the stock is down 9.3% since the results and currently trades at $42.35.
Packaging Corporation of America (NYSE:PKG) Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products, also offering displays and protective packaging solutions.
Packaging Corporation of America reported revenues of $1.98 billion, flat year on year, surpassing analysts' expectations by 3.7%. Looking more broadly, it was an exceptional quarter for the company with an impressive beat of analysts' volume estimates and a narrow beat of analysts' earnings estimates .
The stock is down 1.6% since reporting and currently trades at $176.32.
Ball (NYSE:BALL) Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Ball reported revenues of $2.87 billion, down 17.6% year on year, falling short of analysts' expectations by 8.8%. Looking more broadly, it was a very good quarter for the company with an impressive beat of analysts' earnings estimates and a solid beat of analysts' organic revenue estimates.
Ball had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 10.1% since reporting and currently trades at $58.86.
This content was originally published on Stock Story
