Crown Holdings, Inc. (NYSE:CCK), a leader in metal packaging technology, announced Monday the redemption of all outstanding 3.375% Senior Notes due 2025 issued by its wholly-owned subsidiary, Crown European Holdings S.A. The redemption is set for December 31, 2024, and will encompass the entire initial aggregate principal amount of €600 million.
The redemption price will be equal to 100% of the principal amount of the notes, in addition to accrued and unpaid interest from the most recent interest payment date of November 15, 2024, up to but not including the redemption date. This move is in accordance with the terms outlined in the notice of redemption issued by the 2025 Note Issuer.
In other recent news, Crown Holdings has seen several positive developments. RBC Capital Markets, Loop Capital, and Jefferies have all revised their price targets upwards for Crown Holdings, reflecting confidence in the company's growth prospects and strong financial performance. This follows Crown Holdings' recent third-quarter earnings report, where the company posted an earnings per share of $1.99, exceeding analysts' estimates. The company's consolidated revenues for the quarter were $3.07 billion.
These revisions are driven by the company's above-market volume growth, effective operations management, and strong execution. Crown Holdings' third-quarter performance also led to an increase in the fiscal year 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA) estimate to $1.916 billion by RBC Capital.
In addition to financial upgrades, Crown Holdings reported a GAAP loss of $1.47 per share due to a non-cash pension settlement charge in the third quarter. However, its adjusted earnings per diluted share rose by 15% to $1.99. The company also authorized a $2 billion stock repurchase plan, with $110 million repurchased in the quarter.
For the fourth quarter, Crown Holdings projects adjusted earnings per share between $1.45 and $1.55, and increased its full-year guidance to $6.25 to $6.35 per share.
InvestingPro Insights
Crown Holdings' decision to redeem its 2025 Senior Notes aligns with several key financial indicators and trends highlighted by InvestingPro. The company's market cap stands at $10.89 billion, reflecting its significant position in the metal packaging industry.
An InvestingPro Tip notes that Crown Holdings has been aggressively buying back shares, which, coupled with the note redemption, suggests a strategic approach to capital management. This is further supported by the company's dividend growth of 4.17% over the last twelve months, with a current dividend yield of 1.08%.
The company's financial health is underscored by its profitability over the last twelve months, as indicated by another InvestingPro Tip. This profitability is reflected in Crown Holdings' EBITDA of $1.853 billion for the same period, with an EBITDA growth of 6.74%.
While the company's P/E ratio stands at a high 112.39, the adjusted P/E ratio for the last twelve months is a more moderate 37.69, which may be more indicative of the company's valuation when considering its debt management strategies.
For investors seeking a deeper understanding of Crown Holdings' financial position and future prospects, InvestingPro offers additional tips and insights, with 7 more tips available on the platform.
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