Q4 Earnings Roundup: Ball (NYSE:BALL) And The Rest Of The Industrial Packaging Segment
Let’s dig into the relative performance of Ball (NYSE:BALL) and its peers as we unravel the now-completed Q4 industrial packaging earnings season.
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.
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 $2.88 billion, down 15.4% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
"We delivered strong full-year and fourth quarter results and returned $1.96 billion to shareholders in 2024. Leveraging our strong financial position and leaner operating model, the company was able to deliver on its 2024 goals and remains uniquely positioned to enable our purpose of advancing the greater use of sustainable aluminum packaging, despite the current end consumer environment in certain geographies. We continue to complement our purpose by unlocking additional manufacturing efficiencies, driving innovation and sustainability on a global scale, managing our costs and enabling consistent delivery of high-quality, long-term shareholder value creation," said Daniel W. Fisher, chairman and chief executive officer.
Ball Total Revenue
Ball delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 7.2% since reporting and currently trades at $51.67.
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.
Crown Holdings Total Revenue
The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $87.35.
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.
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 result was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations.
The stock is down 13.9% since reporting and currently trades at $166.01.
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 print came in 2.6% below analysts' expectations. It was a slower quarter as it also logged 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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