News

What Happened?

Shares of metal packaging products manufacturer Crown Holdings (NYSE:CCK) jumped 8.3% in the afternoon session after the company reported a nice "beat and raise" quarter. Crown Holdings blew past analysts' EPS expectations on a smaller revenue beat. Sales rose modestly by 4%, lifted by increased shipments in beverage cans. Looking ahead, the company raised its full-year EPS guidance, which was encouraging. Zooming out, we think this was a good quarter with some key areas of upside.

The shares closed the day at $96.92, up 8% from previous close.

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What The Market Is Telling Us

Crown Holdings’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock gained 10% on the news that the company reported strong second-quarter earnings results. EPS came in ahead of expectations, though revenue missed by a narrow margin. The top line benefited from "higher global beverage can shipments offset primarily by the pass through of $94 million in lower material costs and unfavorable foreign currency of $13 million."

Adding to the positive aspect, free cash flow came in positive, and gross margin ticked up slightly. Overall, it was a strong quarter for the company, with ample reasons for investors to stay positive.

Crown Holdings is up 19.4% since the beginning of the year, and at $96.93 per share, it is trading close to its 52-week high of $97.75 from October 2024. Investors who bought $1,000 worth of Crown Holdings’s shares 5 years ago would now be looking at an investment worth $1,488.

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