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Amcor Earnings Meet Estimates in Q1, Revenues Decrease 2.6% Y/Y

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Amcor Plc (AMCR - Free Report) reported first-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings per share (EPS) of 16 cents, which met the Zacks Consensus Estimate. The bottom line grew 4% from the year-ago quarter.

Including special items, the company reported net earnings per share of 13 cents compared with 11 cents in the prior-year quarter.

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

Total revenues fell 2.6% year over year to $3.35 billion in the reported quarter. The downside was led by a 1% unfavorable impact of foreign exchange and a 1% impact of pass-through of lower raw material costs. The top line missed the Zacks Consensus Estimate of $3.57 billion.

The price/mix had impacts of around 3% on sales. The volume rose 2% from the year-ago quarter.

Amcor’s Q1 Cost & Margins

The cost of sales was down 3.7% year over year to $2.69 billion. Gross profit grew 2.2% year over year to $659 million. The gross margin was 19.7% compared with the year-ago quarter’s 18.7%.

Amcor PLC Price, Consensus and EPS Surprise

 

Amcor PLC Price, Consensus and EPS Surprise

Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote

SG&A expenses were $315 million, up 4.3% year over year. Adjusted operating income was $365 million in the quarter, up 2% from $358 million in the prior-year quarter. The adjusted operating margin was 10.9% compared with 10.4% in the prior-year quarter. Adjusted EBITDA in the quarter was $466 million compared with $459 million in the prior-year quarter.

AMCR’s Q1 Segmental Performance

Flexibles: Net sales decreased 0.6% year over year to $2.55 billion. Volume rose 3% year over year. Our model projected net sales of $2.66 billion and 3.5% year-over-year volume growth. Adjusted operating income improved 2.2% year over year to $329 million. We expected an adjusted operating income of $349 million.

Rigid Packaging: The segment reported net sales of $801 million in the reported quarter, down 8.5% from the prior-year quarter. Volume was down 4% year over year. We expected net sales of $909 million and a volume decline of 1.9% from the prior-year quarter. Adjusted operating income was $62 million, flat year over year. Our prediction for the segment’s operating income was $65 million.

Amcor’s Q1 Cash Flow & Balance Sheet Updates

As of Sept. 30, 2024, Amcor had $432 million of cash and cash equivalents compared with $588 million as of June 30, 2024. The company used $269 million of cash in operating activities in the first quarter of fiscal 2024 compared with $135 million in the year-ago quarter.

As of Sept. 30, 2024, Amcor’s net debt totaled $6.87 billion, up from $6.11 billion as of June 30, 2024.

AMCR’s FY25 Guidance

Adjusted EPS for fiscal 2025 is expected to be 72-76 cents. The company projects an adjusted free cash flow of $900-1,000 million for fiscal 2025.

Amcor’s Price Performance

In the past year, AMCR shares have gained 34.4% compared with the industry’s 33.3% growth.

 

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AMCR’s Zacks Rank

Amcor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Packaging Stocks

AptarGroup, Inc. (ATR - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of $1.49, beating the Zacks Consensus Estimate of $1.43. The bottom line increased 6% year over year from $1.40 (including comparable exchange rates).

Total revenues grew 1.8% year over year to $909 million in the reported quarter. However, the reported figure missed the Zacks Consensus Estimate of $932 million. Core sales, excluding currency and acquisition effects, improved 2% year over year due to strong performances in the pharma and closures segments. We expected core sales to rise 4.7% in the quarter.

Packaging Corporation of America (PKG - Free Report) posted an adjusted EPS of $2.65 in the third quarter of 2024, beating the Zacks Consensus Estimate of earnings of $2.48. The bottom line was higher than the company’s earnings guidance of $2.45 per share and grew 29% year over year. The upside was driven by higher volume in both segments, and increased prices and mix in the Packaging segment, partially offset by lower prices and mix in the Paper segment.

Sales in the third quarter rose 12.6% year over year to $2.18 billion due to higher volumes. The top line beat the Zacks Consensus Estimate of $2.09 billion.

Packaging Stock Awaiting Results

Sealed Air Corporation (SEE - Free Report) , scheduled to release third-quarter 2024 results on Nov. 7, has a trailing four-quarter average surprise of 35.2%. The Zacks Consensus Estimate for SEE’s third-quarter 2024 earnings is pegged at 66 cents per share, implying a year-over-year fall of 14.3%.

The Zacks Consensus Estimate for the company’s top line is pegged at $1.34 billion, indicating a decrease of 2.9% from the prior-year reported figure.

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