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Amcor beats Q3 estimates, raises earnings outlook

Published 2024-04-30, 04:41 p/m
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ZURICH - Amcor plc (NYSE: NYSE:AMCR) has reported a third-quarter earnings per share (EPS) of $0.18, surpassing analyst expectations by $0.02. The company's revenue for the quarter also exceeded forecasts, coming in at $3.67 billion against a consensus estimate of $3.49 billion.

This performance indicates a positive trajectory for the packaging giant, which has raised its adjusted EPS guidance for fiscal 2024.

In the March 2024 quarter, Amcor achieved an adjusted EPS of 17.8 cents per share, marking a 1% increase on a comparable constant currency basis. The company's adjusted earnings before interest and taxes (EBIT) rose by 3% to $397 million, reflecting a year-over-year growth due to structural cost initiatives and a disciplined approach to managing expenses.

Amcor's Interim CEO, Peter Konieczny, highlighted the company's success in delivering financial results above guidance for the third quarter, driven by outperformance in the underlying business and improved earnings leverage. Konieczny expressed confidence in the company's momentum, projecting mid-single-digit adjusted EPS growth in the final quarter of fiscal 2024.

For the fiscal year 2024, Amcor has raised its adjusted EPS guidance to a range of 68.5 to 71 cents per share, up from the previous forecast of 67 to 71 cents. This updated guidance is slightly below the analyst consensus of $0.70, but it includes the impact of the sale of the company's Russian business and other factors. The company also reaffirmed its adjusted free cash flow outlook of $850 to $950 million.

In terms of shareholder returns, Amcor has demonstrated its commitment by increasing its quarterly dividend to 12.5 cents per share and repurchasing $30 million of shares. The company's strong cash flow and balance sheet have enabled these returns, along with the pursuit of growth opportunities.

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Konieczny emphasized the strength of Amcor's underlying business and market positions, stating, "We believe our underlying business and market positions are strong and we will continue to invest for organic growth, pursue acquisitions or repurchase shares and return cash to shareholders through a compelling and growing dividend."

With this positive outlook and the company's strategic focus on growth and shareholder value, Amcor is poised to maintain its momentum in the packaging industry.

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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