Crown Holdings Drops to 52-Week Low - Analyst Blog

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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

UPM-KYMMENE ADR (UPMKY): Get Free Report

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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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