SLGN - Why Silgan Holdings Stock Was Falling Today
2023-07-26 12:41:36 ET
Shares of Silgan Holdings (NYSE: SLGN) were down 13% as of 11:43 a.m. ET Wednesday after the consumer goods packaging company reported its second-quarter earnings results.
Silgan reported solid growth in its dispensing products segment and improving profits in the metal containers segment, but total sales across the business fell by 6% year over year, excluding non-recurring sales in Russia. Investors in morning trading seemed to be reacting to management's outlook for weakening business trends entering the third quarter.
Business trends for Silgan were positive early in the second quarter, but started to weaken later in the period. Its customers are starting to shift away from purchasing new materials as they focus on rightsizing their inventories for the second half of the year. Some companies have reported high inventory levels are impacting their revenue guidance. This is an indication of weaker consumer demand.
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Why Silgan Holdings Stock Was Falling Today