Crown Holdings Inc.
) reached a new 52-week high of $49.49 on Jun 5 before closing
lower at $42.47. Crown Holdings has delivered a year-to-date return
of 11.02%, outperforming the S&P 500 return of 5.93%. Average
volume of shares traded over the last 3 months is approximately
Philadelphia-based Crown Holdings is a leading supplier of
packaging products to consumer marketing companies with a market
cap of $6.77 billion. The company has long-term estimated earnings
per share growth rate of 11.65%.
Shares of Crown Holdings have been on the rise following its upbeat
first-quarter results reported on Apr 14. Crown Holdings reported a
14% year-over-year rise in its first-quarter 2014 adjusted earnings
to 57 cents per share, surpassing the Zacks Consensus Estimate of
For the second quarter of 2014, it expects earnings per share
between 90 cents and $1.00, excluding any impact from the Mivisa
acquisition. Including the impact of Mivisa and excluding the
impact of share repurchases, full-year earnings per share are
expected to exceed the previous guidance of $3.15 to $3.35.
In April, Crown Holdings completed the acquisition of Mivisa, a
leading Spanish manufacturer of two and three-piece food cans and
ends. Mivisa mainly serves the vegetable, fruit, fish and meat end
markets with an approximately 10% market share of the European food
The acquisition is a strategic fit for Crown Holdings and will
significantly enhance the company's position in the strategic
European food can segment by substantially increasing its presence
in Spain, one of Europe's leading agricultural economies. The
acquisition will boost margins of the European food can segment and
is expected to be accretive to earnings in 2014.
Capacity additions in Cambodia, China, Malaysia, Thailand and
Vietnam, as well as the startup of a new facility in Brazil will
aid in continued global beverage can growth. Furthermore, Crown
Holdings has embarked on a cost-reduction initiative to better
align costs with ongoing market conditions in its European
operations. This will result in annual cost savings of
approximately $25 million.
Other Stocks to Consider
Crown Holdings currently holds a Zacks Rank #1 (Strong Buy). Other
well performing packaging stocks include
Proto Labs, Inc.
Graphic Packaging Holding Co.
Tupperware Brands Corp.
). While Proto Labs sports a Zacks Rank #1, Graphic Packaging and
Tupperware Brands hold a Zacks Rank #2 (Buy).
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CROWN HLDGS INC (CCK): Free Stock Analysis
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TUPPERWARE BRND (TUP): Free Stock Analysis
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