2023-04-26 08:45:21 ET
Silgan Holdings ( NYSE: SLGN ) stock edged lower in premarket action after offering a mixed Q1 report.
For the first quarter, the Connecticut-based company reported in-line EPS while a 1.4% deceleration in sales to $1.42B missed estimates. The company noted that a withdrawal from Russia and negative foreign currency impacts hit performance.
“We're pleased with our first quarter performance and solid start to the year, as our businesses continued to deliver strong operating performance and successfully overcame headwinds of approximately $0.15 per diluted share from non-operating items of interest expense and foreign currency translation and from the timing of resin cost fluctuations in the first quarter,” CEO Adam Greenlee said. “Each of our businesses remains focused and continues to execute on both our near-term and long-term strategic priorities, while delivering best-in-class service to our customers and expected organic volume growth in key markets.”
He added that the Dispensing and Specialty Closures and Metal Containers businesses saw strong,volume growth amid positive demand.
“As we look to the full year of 2023, while the timing of our earnings growth will be more weighted to the second half of the year when the year-over-year impact of these headwinds are expected to ease, we are on track to deliver another year of strong organic adjusted EBIT growth, are confirming our estimate of 2023 adjusted earnings per diluted share in the range of $3.95 to $4.15, and believe Silgan is well positioned to continue to deliver significant value for shareholders in 2023 and beyond,” Greenlee said.
Analysts had forecast $4.05 in earnings per share for the full year. A Q2 EPS forecast of between $0.85 and $0.95 fell short of the $1.05 consensus
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Silgan falls short of Q1 sales expectations, offers light Q2 guide