Q4 Earnings Highs And Lows: Silgan Holdings (NYSE:SLGN) Vs The Rest Of The Industrial Packaging Stocks
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the industrial packaging industry, including Silgan Holdings (NYSE:SLGN) 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 4.2% since the latest earnings results.
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 was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
"The Silgan team delivered another year of strong results, with record fourth quarter adjusted EPS and Adjusted EBIT and double digit free cash flow growth, and made significant progress on several important long-term strategic objectives that will benefit our Company in 2025 and beyond. We expanded our market leading dispensing business with the acquisition of Weener Packaging, extended our decades long partnership with our largest customer with another long-term contract extension, and delivered meaningful organic growth. The success of our winning strategy, the power of our portfolio, and the strength of our team continue to create value for our shareholders and position the Company for continued success well beyond 2025," said Adam Greenlee, President and CEO.
Silgan Holdings Total Revenue
The stock is up 1.3% since reporting and currently trades at $53.68.
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 $2.9 billion, up 1.6% year on year, in line with analysts’ expectations. The business had a satisfactory quarter, with EPS guidance for the next quarter exceeding analysts’ expectations but a significant miss of analysts’ constant currency revenue estimates.
Crown Holdings Total Revenue
The market seems content with the results as the stock is up 3.5% since reporting. It currently trades at $88.03.
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 5.1% since the results and currently trades at $55.09.
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.
Packaging Corporation of America reported revenues of $2.15 billion, up 10.7% year on year. This result surpassed analysts’ expectations by 0.6%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ sales volume estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Packaging Corporation of America scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 10.9% since reporting and currently trades at $212.50.
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 $2.88 billion, down 15.4% year on year. This print missed analysts’ expectations by 1.9%. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ adjusted operating income and organic revenue estimates.
Ball had the slowest revenue growth among its peers. The stock is down 10.5% since reporting and currently trades at $49.85.
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