Looking back on industrial packaging stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Crown Holdings (NYSE:CCK) and its peers.
Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.
The 9 industrial packaging stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results.
Crown Holdings (NYSE:CCK)
Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Crown Holdings reported revenues of $3.07 billion, flat year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations.
Commenting on the quarter, Timothy J. Donahue, Chairman, President and Chief Executive Officer, stated, "The Company continued its strong 2024 performance during the third quarter, with results in each of its global beverage can businesses exceeding original expectations."
Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $90.83.
Is now the time to buy Crown Holdings? Access our full analysis of the earnings results here, it’s free.
Best Q3: International Paper (NYSE:IP)
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
International Paper reported revenues of $4.69 billion, up 1.6% year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 21.1% since reporting. It currently trades at $59.40.
Is now the time to buy International Paper? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Silgan Holdings (NYSE:SLGN)
Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.
Silgan Holdings reported revenues of $1.75 billion, down 3.2% year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Silgan Holdings delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.3% since the results and currently trades at $56.53.
Read our full analysis of Silgan Holdings’s results here.
Avery Dennison (NYSE:AVY)
Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.
Avery Dennison reported revenues of $2.18 billion, up 4.1% year on year. This result lagged analysts' expectations by 0.7%. Overall, it was a slower quarter as it also recorded a slight miss of analysts’ organic revenue and EPS estimates.
The stock is down 4.1% since reporting and currently trades at $203.88.
Read our full, actionable report on Avery Dennison here, it’s free.
Ball (NYSE:BALL)
Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Ball reported revenues of $3.08 billion, down 13.7% year on year. This result missed analysts’ expectations by 1.6%. Overall, it was a slower quarter as it also recorded a miss of analysts’ organic revenue estimates.
Ball had the slowest revenue growth among its peers. The stock is down 3.7% since reporting and currently trades at $61.86.
Read our full, actionable report on Ball here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.
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