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It has been about a month since the last earnings report for Amcor (AMCR). Shares have lost about 1.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amcor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Amcor's Earnings Meet Estimates in Q2, Revenues Decrease 0.3% Y/Y
Amcor reported second-quarter fiscal 2025 adjusted earnings per share of 16 cents, which met the Zacks Consensus Estimate. The company reported earnings of around 16 cents per share in the year-ago quarter. Gains from improved volumes, continued strong cost performance and benefits from restructuring initiatives were offset by unfavorable impacts from price/mix.
Including special items, the company reported net earnings per share of 11 cents compared with nine cents in the prior-year quarter.
Amcor’s revenues dipped 0.3% year over year to $3.24 billion. The downside was due to a 1% unfavorable impact of foreign exchange and a 1% impact of pass-through of lower raw material costs. The volume rose 2.3% from the year-ago quarter. Price/mix had an unfavorable impact of approximately 2%, primarily due to lower volumes in high-value healthcare categories. The top line missed the Zacks Consensus Estimate of $3.44 billion.
Amcor’s Cost & Margins in Q2
The cost of sales was down 0.6% year over year to $2.62 billion. Gross profit grew 0.8% year over year to $626 million. The gross margin was 19.3% compared with the year-ago quarter’s 19.1%.
Selling, General & Administrative expenses were $295 million, down 1.3% year over year. The company reported an operating income of $297 million in the fiscal second quarter compared with $242 million in the year-ago quarter.
Adjusted operating income was $363 million, up 3% from $352 million in the prior-year quarter. Improved volumes, continued strong cost performance and benefits from restructuring initiatives were offset by unfavorable impacts from price/mix. The adjusted operating margin was 11.2% compared with 10.8% in the prior-year quarter.
Adjusted EBITDA was $453 million compared with $454 million in the prior-year quarter.
AMCR’s Segment Performance in Q2
Flexibles: Net sales rose 1.2% year over year to $2.51 billion. Volume rose 3% year over year. However, unfavorable movements in foreign exchange rates and impacts related to the pass-through of higher raw material costs each had an offsetting impact on net sales of approximately 1%. Adjusted operating income improved 3% year over year to $322 million.
Rigid Packaging: The segment reported net sales of $730 million, down 5% from the prior-year quarter. Volume was down 1% year over year. An unfavorable 2% currency impact and an unfavorable impact of approximately 2% related to the pass-through of lower raw material costs also led to the decline in sales. Adjusted operating income was $53 million, 4% higher than the year-ago quarter.