Stock Monitor: AptarGroup Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 16, 2018 / If you want access to our free earnings report on Silgan Holdings Inc. (NASDAQ: SLGN) ("Silgan"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SLGN. The Company reported its first quarter fiscal 2018 operating and financial results on April 25, 2018. The packaging products supplier outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Silgan's net sales were $1.01 billion, reflecting an increase of 25.7% compared to $805.4 million in Q1 2017, due to the acquisition of the Dispensing Systems operations in April 2017 and higher net sales in each of the businesses. The Company's revenue numbers beat analysts' estimates of $985 million.
During Q1 2018, Silgan's income before interest and income taxes was $92.2 million, representing a growth of 62.3% compared to $56.8 million in Q1 2017, and margins increased to 9.1% from 7.1% in the prior year's same quarter. The increase in income before interest and income taxes was the result of a higher segment income in the closures and plastic container businesses.
Silgan's effective tax rates were 25.9% and 31.0% in Q1 2018 and Q1 2017, respectively. The Company's effective tax rate for the reported quarter benefitted from the recently enacted US Tax Cuts and Jobs Act 2017 (TCJA).
For Q1 2018, Silgan reported a net income of $45.7 million, or $0.41 per diluted share, compared to $23.2 million, or $0.21 per diluted share, in Q1 2017. The Company's adjusted net income per diluted share was $0.42 in the reported quarter compared to $0.31 in Q1 2017. Silgan's earnings beat Wall Street's estimates of $0.36 per share.
Silgan's Metal Container segment's net sales rose 4.2% to $486.0 million in Q1 2018 compared to $466.2 million in Q1 2017, primarily driven by the result of the pass through of higher raw material and other manufacturing costs, as well as the impact of a favorable foreign currency translation. For Q1 2018, the segment's income fell $6.8 million to $37.1 million compared to $43.9 million in Q1 2017, while its income margin decreased to 7.6% from 9.4% in the prior year's comparable quarter. The decrease in the segment's income was primarily attributable to the unfavorable impact from the planned lower seasonal inventory build in Q1 2018 compared to Q1 2017; a less favorable mix of products sold; lower unit volumes; and foreign currency transaction gains in Q1 2017.
For Q1 2018, Silgan's Closures segment's net sales surged 87.3% to $370.3 million compared to $197.7 million in Q1 2017. This increase was primarily the result of the inclusion of the Dispensing Systems operations which was acquired in April 2017; the impact of the favorable foreign currency translation; and the pass through of higher raw material costs. The segment's income increased $24.4 million to $48.2 million in the reported quarter compared to $23.8 million in the year earlier corresponding quarter, while its income margin increased to 13.0% from 12.0% in Q1 2017. The increase in the segment's income was primarily due to the inclusion of the Dispensing Systems operations, and a continued strong operating performance despite lower unit volumes in the legacy closures operations.
During Q1 2018, Silgan's Plastic Container segment's net sales gained 10.2% to $156.0 million compared to $141.5 million in Q1 2017. This increase was principally due to the pass through of higher raw material costs; higher volumes of approximately 5%; and the impact of a favorable foreign currency translation. The segment's income surged 63% to $11.1 million in Q1 2018 compared to $6.8 million in Q1 2017, while its income margin increased to 7.1% from 4.8% in the year earlier same quarter. The increase in the segment's income was primarily attributable to higher volumes and lower manufacturing costs.
Silgan confirmed its estimates for adjusted net income per diluted share to be in the range of $2.03 to $2.13 for the full fiscal year 2018 compared to an adjusted net income per diluted share of $1.65 for FY17. For Q2 2018, Silgan is projecting adjusted net income per diluted share to be in the band of $0.50 to $0.54.
Stock Performance Snapshot
May 15, 2018 - At Tuesday's closing bell, Silgan's stock dropped 1.21%, ending the trading session at $27.02.
Volume traded for the day: 339.33 thousand shares.
After yesterday's close, Silgan's market cap was at $2.96 billion.
Price to Earnings (P/E) ratio was at 16.62.
The stock has a dividend yield of 1.48%.
The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry.
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