Amcor (NYSE:AMCR – Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.95 EPS for the quarter, missing the consensus estimate of $1.04 by ($0.09), FiscalAI reports. The firm had revenue of $6.13 billion for the quarter, compared to analysts’ expectations of $5.90 billion. Amcor had a net margin of 4.71% and a return on equity of 15.92%.
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 Trading Up 3.5%
Shares of Amcor stock traded up $1.62 on Wednesday, hitting $48.58. The stock had a trading volume of 8,516,574 shares, compared to its average volume of 4,526,309. The stock has a market cap of $22.46 billion, a price-to-earnings ratio of 20.59, a PEG ratio of 3.06 and a beta of 0.56. Amcor has a one year low of $36.25 and a one year high of $50.94. The company has a quick ratio of 0.76, a current ratio of 1.25 and a debt-to-equity ratio of 1.17. The stock’s 50-day simple moving average is $44.05 and its two-hundred day simple moving average is $43.13.
Amcor Dividend Announcement
The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Stockholders 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 of this dividend was Friday, September 4th. Amcor’s dividend payout ratio (DPR) is 110.17%.
Wall Street Analyst Weigh In
A number of research analysts have recently commented on AMCR shares. Wells Fargo & Company boosted their price target on shares of Amcor from $43.00 to $44.00 and gave the company an “equal weight” rating in a research report on Friday, August 14th. BMO Capital Markets started coverage on Amcor in a research report on Thursday, July 16th. They issued a “market perform” rating and a $47.00 price objective on the stock. Weiss Ratings upgraded Amcor from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 29th. Truist Financial set a $51.00 price objective on Amcor in a research note on Tuesday, August 18th. Finally, 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. 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $49.36.
Check Out Our Latest Research Report on AMCR
Amcor Company Profile
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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