2023-07-26 07:01:02 ET
- Silgan Holdings press release ( NYSE: SLGN ): Q2 Non-GAAP EPS of $0.83 misses by $0.07 .
- Revenue of $1.43B (-7.1% Y/Y) misses by $110M .
- Income before interest and income taxes for the second quarter of 2023 was $144.0 million, a decrease of $14.0 million as compared to a record $158.0 million for the second quarter of 2022.
- The effective tax rates were 18.8% and 28.4% for the second quarters of 2023 and 2022, respectively.
- Outlook: The Company has revised its estimate of adjusted net income per diluted share for the full year of 2023 from a range of $3.95 to $4.15 to a range of $3.40 to $3.60 vs. consensus of $4.01.
- Interest expense for 2023 is now expected to be approximately $0.30 per diluted share higher than the prior year primarily due to higher interest rates, as compared to $0.20 per diluted share included in the Company's prior earnings estimate for 2023.
- Adjusted EBIT in the Dispensing and Specialty Closures and Metal Containers segments for 2023 are now expected to be comparable to record levels achieved in 2022, despite customer inventory management in the food and beverage markets impacting volumes in the second half of the year.
- Custom Containers volumes in 2023 are now expected to be approximately 10% below the prior year due to delays in the commercialization of new business and customer inventory management programs, which will result in lower adjusted EBIT in the Custom Containers segment in 2023 as compared to 2022.
- The Company now anticipates interest expense before loss on early extinguishment of debt in 2023 of approximately $170 million based on the current forward interest rate curve and an effective tax rate for 2023 of approximately 24%.
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The Company has revised its estimate of free cash flow in 2023 from approximately $425 million to approximately $375 million as compared to $368.2 million in 2022.
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Capital expenditures are now expected to be approximately $230 million in 2023.
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For the third quarter of 2023 , the Company expects low single digit organic volume growth in the Dispensing and Specialty Closures segment and flat volumes in the Metal Containers segment as compared to the prior year quarter, with customer inventory management in the food and beverage markets impacting volumes in the quarter. Volumes in the Custom Containers segment for the third quarter of 2023 are expected to be approximately 10% below the prior year quarter due to delays in the commercialization of new business and customer inventory management programs. The Company is providing an estimate of adjusted net income per diluted share for the third quarter of 2023 in the range of $1.10 to $1.20 vs. consensus of $1.35, as compared to a record $1.28 in the third quarter of 2022. The anticipated year-over-year change includes higher interest expense of $0.08 per diluted share and non-recurring income associated with Russia of $0.03 per diluted share.
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Silgan Holdings misses Q2 top and bottom line estimates; updates FY23 and initiates Q3 outlook