Back to top

Image: Bigstock

Amcor Gears Up to Report Q1 Earnings: What Should You Expect?

Read MoreHide Full Article

Amcor Plc (AMCR - Free Report) is scheduled to report first-quarter fiscal 2025  results on Oct. 31, after the closing bell.

The Zacks Consensus Estimate for AMCR’s first-quarter revenues is pegged at $3.57 billion, indicating 3.7% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at 16 cents per share. The Zacks Consensus Estimate for AMCR’s first-quarter earnings has moved down 6% in the past 60 days. The estimate indicates a flat year-over-year bottom line.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

AMCR’s Solid Earnings Surprise History

Amcor’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 6.7%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

What the Zacks Model Unveils for Amcor

Our proven model does not conclusively predict an earnings beat for Amcor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Amcor is -2.04%.

Zacks Rank: Amcor currently carries a Zacks Rank of 3.

Factors Likely to Have Shaped AMCR’s Q1 Performance

Amcor’s total volume growth has been in the negative territory since the first quarter of fiscal 2023, reflecting weak market demand. This is likely to have been led by inflationary pressures that have been weighing on consumer spending, which, in turn, have affected packaging demand. However, the headwinds are likely to have been offset by consumers’ increasing demand for more sustainable packaged products. 

Our model projects 2% growth in overall volumes for the first quarter of fiscal 2025. Overall price/mix benefits are expected to be 0.7% for the quarter.

Nonetheless, Amcor has been facing intermittent supply shortages, and price volatility of certain resins and raw materials because of market dynamics and higher rates of inflation impacting other costs. The impacts of this are expected to get reflected in the company’s fiscal first-quarter earnings results.

Amcor’s Q1 Segment Projections

Our model projects 3.5% growth in the Flexibles segment’s volumes in the to-be-reported quarter, aided by solid demand. The price/mix is expected to be a favorable 0.2%. Our sales projection for the Flexibles segment is pegged at $2.66 billion, indicating 3.7% year-over-year growth.

Our model estimates a 1.9% rise in volumes for the Rigid Packaging segment in the fiscal first quarter and a price/mix increase of 2%. The sales projection for the segment is $909 million, indicating 3.9% year-over-year growth.

AMCR’s Share Price Performance

Over the past year, shares of Amcor have gained 29.4% compared with the industry’s 34.1% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Stocks to Consider

Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.

Ingersoll Rand Inc. (IR - Free Report) , scheduled to release its third-quarter 2024 on Oct. 31, currently has an Earnings ESP of +1.22% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ingersoll Rand’s third-quarter 2024 earnings is pegged at 82 cents per share, suggesting year-over-year growth of 6.5%. It has a trailing four-quarter average surprise of 11%.

Eaton Corporation plc (ETN - Free Report) , slated to release earnings on Oct. 31, has an Earnings ESP of +1.25% and a Zacks Rank of 2 at present.

The consensus estimate for Eaton’s earnings for the third quarter of 2024 is pegged at $2.80 per share, indicating year-over-year growth of 13.4%. ETN has a trailing four-quarter average surprise of 4.7%.

Xylem Inc. (XYL - Free Report) currently has an Earnings ESP of +0.10% and a Zacks Rank of 3. The company is slated to release third-quarter of 2024 results  on Oct. 31.

The consensus estimate for XYL’s earnings for the third quarter of 2024 is pegged at $1.11 per share, indicating year-over-year growth of 12.1%. It has a trailing four-quarter average surprise of 6.1%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Eaton Corporation, PLC (ETN) - free report >>

Ingersoll Rand Inc. (IR) - free report >>

Xylem Inc. (XYL) - free report >>

Amcor PLC (AMCR) - free report >>

Published in