The chart below shows how SLGN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SLGN sees a -1.89% change in stock price 10 days leading up to the earnings, and a +2.30% change 10 days following the report. On the earnings day itself, the stock moves by +0.62%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
EPS and Cash Flow Growth: Mid single digit organic adjusted EPS growth and double digit free cash flow growth in 2024, despite customer destocking activities that impacted the first half of the year.
Q4 Adjusted EBIT Growth: Adjusted EBIT for Q4 increased by 12% year over year, with record adjusted EBIT in dispensing and specialty closures and higher adjusted EBIT in the metal containers and custom containers segments.
Strong EPS Growth: Record adjusted EPS of $0.85 increased $0.22 or 35% from the prior year, reflecting strong financial performance.
Segment Sales Increase: Dispensing and specialty closures segment sales increased 22% versus the prior year, primarily due to the contribution from the Vayner Packaging acquisition, which added approximately $100 million during the quarter.
Projected EPS Growth: Estimated adjusted EPS for 2025 is projected to be in the range of $4 to $4.20, representing a 13% increase at the midpoint compared to 2024.
Negative
Metal Containers Sales Decline: Net sales in the metal containers segment declined by 8% year-over-year, primarily due to a less favorable price mix and lower volumes for larger cans in the fruit and vegetable markets.
EBIT Losses from Inventory Reduction: The company incurred approximately $10,000,000 in adjusted EBIT losses due to inventory reduction efforts, which were necessary to optimize operations but negatively impacted expected earnings for the quarter.
Segment Profitability Challenges: Despite a 12% increase in total adjusted EBIT for the quarter, the metal containers segment's adjusted EBIT only increased by 3%, indicating limited profitability growth amidst declining sales.
EBIT Decline Forecast: The company anticipates a $40,000,000 decline in adjusted EBIT for the metal containers segment in 2024, with only half of that expected to be recovered in 2025, reflecting ongoing challenges in that market.
Projected Corporate Expense Increase: Corporate expenses are projected to increase to approximately $40,000,000 in 2025, which may pressure overall profitability as the company integrates the Vayner acquisition.
Earnings call transcript: Silgan Holdings Q4 2024 beats expectations, stock rises
SLGN.N
-2.02%