Shares of Crown Holdings (CCK +0.04%), the maker of aluminum cans and other packaging supplies, reported better-than-expected results in its third-quarter earnings report, sporting solid growth on the top and bottom lines. It also raised its guidance for the full year.
As of 11:48 a.m. ET, the stock was up 3.7% on the news.
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Crown Holdings raises the bar
In a fluid environment where tariffs have roiled global manufacturers like Crown Holdings, the company is still managing to deliver growth. In the third quarter, revenue rose 4.2% to $3.2 billion, topping estimates at $3.14 billion.
The company experienced strong growth in Europe, with volume growth up 12% in the European beverage segment, which drove a 27% increase in segment income. Other regions were mixed.
Overall, segment income, which adjusts operating income for one-time charges and intangibles amortization, was up 4% to $490 million, and adjusted earnings per share (EPS) increased 13% to $2.24, which beat the consensus at $1.99.
Today’s Change
(0.04%) $3.93
Current Price
$98.34
Key Data Points
Market Cap
$11B
Day’s Range
$97.47 – $102.85
52wk Range
$75.98 – $109.48
Volume
1.4M
Avg Vol
1.3M
Gross Margin
18.55%
Dividend Yield
0.01%
Crown lifts its guidance
Management said it was raising its full-year forecast based on its performance through the first three quarters of the year. The company now expects adjusted earnings per share of $7.70 to $7.80, up from a previous forecast of $7.10 to $7.50. For the fourth quarter, it sees adjusted EPS of $1.65 to $1.75, which compares to the consensus at $1.58.
Following the report, Jefferies reiterated a buy rating on the stock, calling it “undervalued.”
At a price-to-earnings ratio of less than 13, Crown looks well priced for a category leader that’s growing in a challenging environment.