Crown Holdings Drops to 52-Week Low - Analyst Blog


Shares of Crown Holdings, Inc. ( CCK ) hit a new 52-week low of $37.29 on Feb 4, following its sluggish fourth-quarter 2013 results.

Philadelphia-based Crown, a leading supplier of packaging products with a market cap of roughly $5.66 billion, has seen its share price fall roughly 7.85% year to date. Crown's long-term estimated earnings per share (EPS) growth rate is 5.0%. The average volume of shares traded over the last three months was approximately 1090K.

Factors That Affected Performance

Crown Holdings' fourth-quarter 2013 adjusted earnings fell 6% year over year to 48 cents per share. The results also missed the Zacks Consensus Estimate of 50 cents.

Though net sales increased 1.7% year over year to $2.07 billion, it fell short of the Zacks Consensus Estimate. Gross profit declined 2.5% to $274 million from the year-ago quarter mainly due to lower volumes and reduced production activity across food can operations in North America and Europe. Gross margin contracted 50 basis points to 13.2% in the quarter.

Decline in North American volumes was mainly due to the closure of operations in Puerto Rico. Overall food can production activity in the quarter was also down 15% year over year. In addition, the debt-to-capitalization ratio of Crown remained high at 92% as of Dec 31, 2013.

On the bright side, Crown Holdings expects general business conditions in North America and Europe to improve in 2014. Nevertheless, a high debt-to-capitalization ratio and market fluctuations remain concerns.

Crown Holdings currently has a Zacks Rank #3 (Hold).

Other Stocks to Consider

Some better-ranked players in the same industry include Ball Corp. ( BLL ), Resolute Forest Products Inc. ( RFP ) and UPM-Kymmene Oyj ( UPMKY ), all of which sport a Zacks Rank #1 (Strong Buy).

BALL CORP (BLL): Free Stock Analysis Report

CROWN HLDGS INC (CCK): Free Stock Analysis Report

RESOLUTE FOREST (RFP): Free Stock Analysis Report


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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BLL , CCK , EPS , RFP , UPMKY

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