Crown Holdings Cuts FY22 Earnings Forecast Despite Q2 Beat

Shivani Kumaresan
1 min read
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In this article:

  • Crown Holdings Inc (NYSE: CCK) reported second-quarter FY22 sales growth of 22.9% year-on-year, to $3.51 billion, beating the consensus of $3.21 billion.

  • The company attributed the sales growth to increased beverage can unit volumes and the pass-through of higher material costs.

  • Segment Revenue: Americas Beverage rose 25.7%, European Beverage climbed 25.1%, Asia Pacific grew 30.9%, and Transit Packaging improved 8.5%.

  • Selling, general and administrative expenses fell 4.8% Y/Y to $140 million.

  • The operating margin was 13.3%, and operating income for the quarter rose 21% to $466 million.

  • The company held $526 million in cash and equivalents as of June 30, 2022.

  • Inventories at the end of June rose 49% Y/Y.

  • Adjusted EPS of $2.10 beat the analyst consensus of $2.03.

  • Outlook: Crown sees Q3 adjusted EPS of $1.75 - $1.85, against the Street view of $2.08.

  • The company reduced its FY22 adjusted EPS outlook to $7.65 - $7.85 (prior view $8.00 - $8.20) versus the consensus of $8.12.

  • Price Action: CCK shares closed higher by 1.82% at $93.83 on Wednesday.

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