Crown Holdings' first-quarter results mixed; second-quarter profit guidance higher than's expectations

TAMPA, Fla. – Crown Holdings, Inc. (NYSE: ) reported mixed financial results for the first quarter ended March 31, 2024, with adjusted earnings per share (EPS) slightly above analysts' expectations, But revenue fell short of analysts' expectations.

The company, a leader in consumer packaged goods, reported adjusted earnings of $1.02 per share, $0.03 above analysts' expectations of $0.99. However, revenue for the quarter was $2.78 billion, below consensus estimates of $2.95 billion and down from $2.97 billion in the same period last year.

The company's results were impacted by higher beverage can shipments in the Americas and Europe and a $10 million favorable foreign exchange impact. These gains were partially offset by a $130 million pass-through from lower material costs and lower sales in most other businesses. Operating income fell to $245 million from $269 million in the first quarter last year. Chairman, President and Chief Executive Officer Timothy J. Donahue attributed the strong performance of the beverage can business to an 11% increase in segment consolidated revenue compared with last year's first quarter.

Looking ahead, Crown Holdings provided guidance for second-quarter adjusted earnings of $1.55 to $1.65 per share, above analysts' average estimate of $1.56. The company expects full-year 2024 adjusted earnings per share to be in a range of $5.80 to $6.20, compared with the consensus estimate of $5.98.

The company's net profit attributable to Crown Holdings was US$67 million, down from US$102 million in the first quarter last year. Adjusted free cash flow increased $296 million due to higher operating cash due to lower working capital and lower capital expenditures. Adjusted net leverage improved to 3.4 times in the 12 months ended March 31, 2024, from 4.1 times in the same period last year.

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Crown Holdings' capital expenditure outlook remains conservative, with it not expected to exceed $500 million per year in 2024 and 2025.

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