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Q1 Earnings Highlights: Ball (NYSE:BALL) Vs The Rest Of The Industrial Packaging Stocks


Kayode Omotosho /
2024/07/08 3:41 am EDT

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at industrial packaging stocks, starting with Ball (NYSE:BALL).

Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.

The 8 industrial packaging stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 2.2%. while next quarter's revenue guidance was 2.1% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the industrial packaging stocks have fared somewhat better than others, they collectively declined, with share prices falling 5% on average since the previous earnings results.

Ball (NYSE:BALL)

Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Ball reported revenues of $2.87 billion, down 17.6% year on year, falling short of analysts' expectations by 8.8%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' organic revenue estimates.

"We delivered strong first quarter results. Following the successful sale of the aerospace business in mid-February, we have executed on our plans to immediately deleverage, initiate a large multi-year share repurchase program and position the company to enable our purpose of advancing the greater use of sustainable aluminum packaging. We continue to complement our purpose by driving innovation and sustainability on a global scale, unlocking additional manufacturing efficiencies and activating an operating model to enable high-quality, long-term shareholder value creation," said Daniel W. Fisher, chairman and chief executive officer.

Ball Total Revenue

Ball delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 8.9% since the results and currently trades at $59.64.

Is now the time to buy Ball? Access our full analysis of the earnings results here, it's free.

Best Q1: Sealed Air (NYSE:SEE)

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Sealed Air reported revenues of $1.33 billion, down 1.4% year on year, outperforming analysts' expectations by 3.8%. It was a very strong quarter for the company, with an impressive beat of analysts' volume and earnings estimates.

Sealed Air Total Revenue

Sealed Air delivered the biggest analyst estimates beat among its peers. The stock is up 7.9% since the results and currently trades at $34.62.

Is now the time to buy Sealed Air? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Silgan Holdings (NYSE:SLGN)

Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Silgan Holdings reported revenues of $1.32 billion, down 7.1% year on year, falling short of analysts' expectations by 4.1%. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.

The stock is down 10.3% since the results and currently trades at $41.88.

Read our full analysis of Silgan Holdings's results here.

Avery Dennison (NYSE:AVY)

Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.

Avery Dennison reported revenues of $2.15 billion, up 4.2% year on year, in line with analysts' expectations. It was an ok quarter for the company, with a decent beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.

Avery Dennison scored the fastest revenue growth among its peers. The stock is up 2.4% since the results and currently trades at $216.04.

Read our full, actionable report on Avery Dennison here, it's free.

Berry Global Group (NYSE:BERY)

Founded as Imperial Plastics, Berry Global (NYSE: BERY) is a manufacturer and marketer of plastic packaging products, including containers, bottles, and prescription packaging.

Berry Global Group reported revenues of $3.08 billion, down 6.4% year on year, falling short of analysts' expectations by 2.1%. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.

The stock is down 5.3% since the results and currently trades at $58.01.

Read our full, actionable report on Berry Global Group here, it's free.

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