TAMPA, Fla. - Crown Holdings, Inc. (NYSE: NYSE:CCK) reported a robust second quarter, surpassing analysts' earnings expectations and issuing strong forward guidance. Investors responded positively to the earnings release, with Crown Holdings' stock surging by an impressive 7.8%.
The company's adjusted earnings per share (EPS) for the quarter were $1.81, beating the consensus estimate of $1.59. However, revenue for the quarter was slightly below expectations at $3.04 billion compared to the anticipated $3.06 billion.
The company's performance was buoyed by a 6% increase in global beverage can shipments, including a notable 9% rise in North America. This growth, along with a 21% improvement in beverage segment income, underscored the company's strong position in the global beverage business. Crown Holdings' Chairman, President, and CEO, Timothy J. Donahue, highlighted the company's broad geographic presence and strategic customer alliances as key drivers of the quarter's success.
Looking ahead, Crown Holdings provided optimistic guidance for the third quarter, with an EPS range of $1.75 to $1.85, straddling the analyst consensus of $1.79. The company also raised its full-year 2024 EPS guidance to a range of $6.00 to $6.25, above the consensus estimate of $5.97.
The second quarter's net income attributable to Crown Holdings was $174 million, an increase from $157 million in the same quarter last year. The reported diluted EPS also rose to $1.45 in 2024 from $1.31 in 2023.
Donahue expressed confidence in the company's financial health, noting the record first half-year free cash flow of $178 million and the reduction in net leverage from 4.0 times a year earlier to 3.2 times. With the anticipated proceeds from the sale of its stake in European metal packaging supplier Eviosys, Crown Holdings expects to end 2024 with net leverage below 3.0 times.
In comparison to the same quarter last year, net sales saw a slight decrease from $3,109 million to $3,040 million, attributed to lower material costs and unfavorable foreign currency impacts. Despite this, the company's strategic initiatives and operational performance have positioned it for continued growth and shareholder value creation.
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