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Silgan stock jumps 3% on upbeat guidance despite disappointing results

EditorRachael Rajan
Published 30/10/2024, 10:22 pm
© Reuters.
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STAMFORD, Conn. - Silgan Holdings Inc. (NYSE:SLGN) saw its stock jump 3.96% after reporting third quarter earnings that missed analyst estimates but provided upbeat full-year guidance.

The packaging products maker reported adjusted earnings per share of $1.21 for Q3, below the consensus estimate of $1.24. Revenue came in at $1.75 billion, falling short of analysts' expectations of $1.83 billion and declining 3% YoY.

Despite the earnings miss, Silgan narrowed its full-year 2024 adjusted EPS guidance to $3.55-$3.65, compared to the previous range of $3.55-$3.75. The midpoint of the new range represents a 6% increase over 2023 adjusted EPS of $3.40.

"Our third quarter results continued to benefit from the success of our long-term strategic growth initiatives, the power of the Silgan portfolio and the strength and agility of our operating teams," said Adam Greenlee, President and CEO.

The company's Dispensing and Specialty Closures segment delivered double-digit growth and record volume in dispensing products. However, Metal Containers segment revenue declined 7% YoY to $1.02 billion, primarily due to the pass-through of lower raw material costs.

Silgan completed its acquisition of Weener Packaging (NYSE:PKG) during the quarter, which is expected to expand its global dispensing business. The company anticipates significant earnings growth in 2025 and beyond, driven by organic growth and synergies from the Weener acquisition.

For Q4 2024, Silgan projects adjusted EPS of $0.78-$0.88, representing a 32% increase at the midpoint compared to Q4 2023.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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