Q4 Industrial Packaging Earnings Review: First Prize Goes to Crown Holdings (NYSE:CCK)
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at industrial packaging stocks, 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 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 3.4% since the latest earnings results.
Best Q4: 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 $2.90 billion, up 1.6% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ constant currency revenue estimates.
"Crown delivered strong results in the fourth quarter, with segment income advancing 12% compared to the prior year," stated Timothy J. Donahue, Chairman, President and Chief Executive Officer.
Crown Holdings Total Revenue
The stock is up 3.6% since reporting and currently trades at $88.13.
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, outperforming analysts’ expectations by 0.6%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ sales volume estimates but EPS guidance for next quarter missing analysts’ expectations.
Packaging Corporation of America Total Revenue
Packaging Corporation of America delivered the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.5% since reporting. It currently trades at $210.99.
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 5.5% since the results and currently trades at $54.86.
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 number met analysts’ expectations. More broadly, it was a slower quarter as it logged a significant miss of analysts’ adjusted operating income estimates.
The stock is up 2.8% since reporting and currently trades at $54.52.
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 print was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it recorded full-year EPS guidance missing analysts’ expectation.
The stock is down 4.2% since reporting and currently trades at $184.54.
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