Crown Holdings stock ( NYSE:CCK ) fell today after the packaging maker claimed that growing expenses ate into profits in its third-quarter results report and lowered its full-year estimate.
As a consequence, as of 11:53 a.m. ET on Tuesday, the stock ( NYSE:CCK ) was down 18.5%.
So, What’s the Deal With Crown Holdings Stock?
Crown Holdings, which manufactures aluminum and steel cans for food and drinks, reported good top-line growth in the quarter, with sales increasing 11.6% to $3.26 billion, slightly less than analyst expectations of $3.3 billion. Volumes of beverage cans climbed by 6%, indicating that demand for its goods is high.
However, rising raw material and energy prices and foreign currency headwinds impacted the bottom line. Operating income declined from $348 million to $297 million, while adjusted earnings per share (EPS) fell from $2.03 to $1.46, below projections of $1.77.
Timothy Donahue, the CEO, stated: “Since our previous results announcement in mid-July, the effects of inflation, European energy costs, interest rates, and currency have gotten increasingly difficult to manage. With input prices projected to stay high prior to our contractual inflationary resets in 2023, and many customers altering their order patterns in reaction to weaker consumer spending, we anticipate that the operational environment and margins will remain under pressure for the remainder of 2022.”
So, What Now?
Crown Holdings likewise reduced its full-year forecast. The business anticipates fourth-quarter adjusted EPS of $1 to $1.10, significantly below the $1.77 analyst exp...
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