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Unpacking Q1 Earnings: Silgan Holdings (NYSE:SLGN) In The Context Of Other Industrial Packaging Stocks


Kayode Omotosho /
2024/07/01 5:25 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Silgan Holdings (NYSE:SLGN) and the rest of the industrial packaging stocks fared in Q1.

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 9 industrial packaging stocks we track reported a weaker Q1; on average, revenues missed analyst consensus estimates by 1.6%. 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 industrial packaging stocks have held roughly steady amidst all this, with share prices up 0.2% on average since the previous earnings results.

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' operating margin and organic revenue estimates.

"The Silgan team delivered strong first quarter results at the high end of our guidance range, which continued to display the power of our diverse portfolio and winning long-term business strategy," said Adam Greenlee, President and CEO.

Silgan Holdings Total Revenue

The stock is down 9.3% since the results and currently trades at $42.33.

Read our full report on Silgan Holdings 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' revenue and volume estimates.

Sealed Air Total Revenue

Sealed Air delivered the biggest analyst estimates beat among its peers. The stock is up 8.4% since the results and currently trades at $34.79.

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

Graphic Packaging Holding (NYSE:GPK)

Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.

Graphic Packaging Holding reported revenues of $2.26 billion, down 7.3% year on year, falling short of analysts' expectations by 5.1%. It was a weak quarter for the company, with a miss of analysts' operating margin and volume estimates.

The stock is down 5.8% since the results and currently trades at $26.21.

Read our full analysis of Graphic Packaging Holding's results here.

Crown Holdings (NYSE:CCK)

Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.

Crown Holdings reported revenues of $2.78 billion, down 6.4% year on year, falling short of analysts' expectations by 5.1%. It was a weak quarter for the company, with a miss of analysts' revenue and operating margin estimates.

The stock is down 8.3% since the results and currently trades at $74.39.

Read our full, actionable report on Crown Holdings here, it's free.


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