Amcor (NYSE:AMCR) Issues Earnings Results

Key Points

• Amcor reported adjusted earnings of $0.95 per share, below the $1.04 consensus estimate, while quarterly revenue of $6.13 billion exceeded expectations of $5.90 billion.
• Organic volumes grew 1% for a fourth consecutive quarter of sequential improvement, and Amcor captured $60 million in quarterly synergies. Management reaffirmed its $650 million three-year synergy target.
• The company lowered its transition-period adjusted EPS outlook to $1.70–$1.80 from $1.80–$1.90, citing higher energy and distribution costs; it also reported an $820 million free cash outflow and higher leverage.

Amcor (NYSE:AMCR - Get Free Report) released its earnings results on Wednesday. The company reported $0.95 earnings per share for the quarter, missing analysts' consensus estimates of $1.04 by ($0.09), FiscalAI reports. Amcor had a net margin of 4.71% and a return on equity of 15.92%. The company had revenue of $6.13 billion for the quarter, compared to the consensus estimate of $5.90 billion.

Here are the key takeaways from Amcor's conference call:

• Organic volumes grew 1%, the fourth consecutive quarter of sequential improvement, with focus categories up 3%; management said October volumes were in line with September. Growth was broad across regions, with pet food, food service and China among the areas highlighted.
• Amcor captured $60 million in quarterly synergies and reported $170 million in annual sales from new growth-synergy awards. Management reaffirmed its $650 million three-year synergy target, expects to achieve most of it by the end of 2027, and is targeting double-digit adjusted EPS growth in 2027.
• The company lowered its transition-period adjusted EPS outlook to $1.70–$1.80 per share from $1.80–$1.90, citing the timing of higher energy and distribution costs. Management estimated gross costs of more than $100 million, with nearly half offset so far, and expects pricing and productivity actions to address the pressure by year-end.
• Free cash outflow was $820 million, and leverage rose to 3.76 times; management attributed about $500 million of working capital pressure to the Middle East conflict. It expects cash flow to be neutral for the transition period and aims to recover the working capital by the end of 2027, targeting leverage of about 3 times.
• The board approved a modest quarterly dividend increase to $0.66 per share. Management described the increase as reflecting confidence in business momentum and disciplined capital allocation.

Amcor Stock Performance

Shares of NYSE:AMCR traded up $1.62 during midday trading on Wednesday, reaching $48.58. 8,516,574 shares of the company traded hands, compared to its average volume of 4,526,309. The firm's fifty day moving average price is $44.05 and its two-hundred day moving average price is $43.13. The firm has a market capitalization of $22.46 billion, a price-to-earnings ratio of 20.59, a price-to-earnings-growth ratio of 3.06 and a beta of 0.56. The company has a quick ratio of 0.76, a current ratio of 1.25 and a debt-to-equity ratio of 1.17. Amcor has a 12 month low of $36.25 and a 12 month high of $50.94.

Amcor Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Friday, September 4th were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date was Friday, September 4th. Amcor's payout ratio is presently 110.17%.

Analyst Ratings Changes

Several equities analysts recently commented on AMCR shares. Jefferies Financial Group set a $44.92 price objective on Amcor and gave the company a "hold" rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. lowered Amcor from an "overweight" rating to a "neutral" rating and boosted their target price for the company from $44.00 to $47.00 in a research note on Monday, August 17th. Wells Fargo & Company boosted their target price on Amcor from $43.00 to $44.00 and gave the company an "equal weight" rating in a research note on Friday, August 14th. Citigroup reaffirmed a "buy" rating and set a $52.00 price target (up from $47.00) on shares of Amcor in a research report on Friday, August 14th. Finally, Truist Financial set a $51.00 price target on Amcor in a research note on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $49.36.

About Amcor

Amcor plc NYSE: AMCR is a global packaging company that develops and produces packaging solutions for food, beverage, pharmaceutical, medical, personal care, household, and other consumer and industrial products. Its offerings include flexible packaging, rigid containers, closures, bottles, specialty cartons, and related packaging systems designed to protect products, support supply chains, and improve convenience and sustainability.

The company serves customers across North America, Latin America, Europe, Asia-Pacific, and other international markets.

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