Crown Holdings, Inc.
) hit a new 52-week low of $37.29 on Feb 4, following its
sluggish fourth-quarter 2013 results.
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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
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
Resolute Forest Products Inc.
), all of which sport a Zacks Rank #1 (Strong Buy).