Crown Holdings Adjusts EPS Outlook Amid Mixed Q3 Results

Crown Holdings Inc. has revised its full-year adjusted earnings per share forecast upward, now expecting $6.25 to $6.35. However, the company reported a net loss for Q3, reflecting challenges amid a pension settlement charge, despite slight revenue growth.

Date: 18-10-2024

AI Rating: 6

Crown Holdings Inc. (CCK) has made notable revisions to its earnings projections in a recent report. The company now expects its full-year adjusted earnings per share (EPS) to be in the range of $6.25 to $6.35, an increase from the previous range of $6.00 to $6.25. This is a positive indication, as it exceeds analysts' expectations of $6.15 per share for fiscal year 2024.

In terms of free cash flow, despite a $100 million pension contribution during the third quarter, Crown Holdings anticipates adjusted free cash flow for the year to be at least $750 million, with capital spending capped at $450 million. This suggests a solid cash generation ability, which can further support the company's strategic initiatives and dividend returns.

However, the report also highlights significant challenges faced by the company. For the third quarter, Crown reported a net loss of $175 million or $1.47 per share, a stark contrast to net income of $159 million or $1.33 per share in the same period last year. The net loss was impacted by pension settlement charges of $517 million, which are substantial and overshadow the otherwise positive EPS growth.

From a quarterly performance perspective, the adjusted EPS stood at $1.99, surpassing last year's $1.73 and also exceeding analysts' expected earnings of $1.80 per share. This reflects a strong underlying performance in operational earnings, despite the net loss attributable to pension-related costs.

Revenue for the third quarter showed a slight increase to $3.074 billion from $3.069 billion year-over-year, driven by higher shipments of global beverage cans and food cans in North America, although it was partially offset by lower volumes in other business segments and a $9 million adverse foreign currency translation. This revenue performance was in line with analyst expectations, which projected $3.07 billion.

Stocks: CCK