Key Stats for Crown Holdings Stock
- Price Change for $CCK stock: 8%
- Current Share Price: $94
- 52-Week High: $109
- $CCK Stock Price Target: $117
What Happened?
Crown Holdings (CCK) stock jumped over 8% after it crushed third-quarter expectations and raised full-year guidance.
The packaging giant, which manufactures metal beverage and food cans, reported adjusted earnings of $2.24 per share, blowing past the $1.99 analyst consensus. Revenue hit $3.2 billion, topping the $3.14 billion Wall Street was expecting.
The standout performance came from European Beverage, where volumes surged 12% and segment income jumped 27% year-over-year.
CEO Timothy Donahue noted that global beverage can volumes were mixed, with double-digit gains in Europe and the Middle East balancing softness elsewhere.
Based on the strong results through nine months, Crown raised its full-year adjusted earnings guidance to $7.70 to $7.80 per share from the prior range of $7.10 to $7.50.
That’s a meaningful increase signaling management’s confidence in fourth-quarter execution. The company also boosted its adjusted free cash flow outlook to approximately $1.0 billion for the year after capital spending of around $400 million.
Crown achieved a significant financial milestone by hitting its long-term adjusted net leverage target of 2.5x.
This accomplishment came while the company simultaneously returned over $400 million to shareholders through buybacks and dividends during the first nine months.
CFO Kevin Clothier guided for fourth-quarter adjusted earnings between $1.65 and $1.75 per share with an effective tax rate around 25%.
See analysts’ growth forecasts and price targets for CCK stock (It’s free!) >>>
What the Market Is Telling Us About CCK Stock
The surge in CCK stock reflects relief that Crown’s business momentum is accelerating as the year progresses. The 13% adjusted earnings growth in the quarter demonstrates pricing power and operational efficiency despite mixed volume trends globally.
Segment income rising 4% to $490 million shows the company is extracting more profit from each dollar of revenue.
European strength is encouraging, given the region’s economic challenges. Volume growth of 12% leading to 27% segment income growth, suggests Crown has pricing discipline and cost structure advantages in that market.
The company passed through $104 million in higher material costs during the quarter, maintaining margins despite input price pressure.
The leverage target achievement matters because it gives Crown significant financial flexibility. Management’s commitment to maintaining a strong balance sheet while prioritizing shareholder returns validates the investment thesis for CCK stock.
However, the guidance raise isn’t uniform across all geographies. Management acknowledged softness in Asia and Latin America beverage volumes.
Global beverage demand patterns remain uneven, creating execution risk if European momentum slows or Asian weakness spreads.
The fourth-quarter earnings guidance of $1.65 to $1.75 per share, while solid, suggests a sequential deceleration from the third quarter’s $2.24.
With leverage targets met and free cash flow approaching $1 billion annually, investors will watch whether Crown accelerates buybacks, increases dividends, or pursues acquisitions.
The 14% year-to-date gain in CCK stock suggests the market expects management to deploy capital effectively, but any missteps could disappoint.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!