- Silgan’s fourth-quarter net sales increased by 5.3% year-over-year, reaching $1.41 billion, beating the estimated $1.39 billion.
- Dispensing and Specialty Closures sales rose by 22% to $639.4 million, exceeding expectations of $603.7 million.
- Metal Containers sales declined by 8.3% to $610.2 million, missing the estimated $625.7 million.
- Custom Containers sales were up by 6%, at $161.6 million, surpassing the anticipated $157.6 million.
- Adjusted EPS for the quarter was 85 cents, up from 63 cents year-over-year, beating the estimated 81 cents.
- Pretax profit dropped by 42% to $48.6 million, falling short of the estimated $112.1 million.
- For the first quarter of 2025, the company forecasts adjusted EPS between 74 and 84 cents, compared to the estimate of 77 cents.
- The year forecast for adjusted EPS is between $4.00 and $4.20, slightly higher than the estimate of $4.08.
- Silgan expects interest and other debt expenses for 2025 to be around $185 million and an effective tax rate of 24%.
- Capital expenditures are projected to increase to approximately $300 million in 2025 due to the Weener Packaging acquisition, up from $262.8 million in 2024.
- Free cash flow in 2025 is estimated to rise by 15% to about $450 million, compared to $391.3 million in 2024.
- The Custom Containers business continues to thrive due to strong market demand and the acquisition of new business.
- Currently, the company’s stock is rated with 10 buys, 1 hold, and 1 sell.
Silgan Holdings on Smartkarma
Analysts at Baptista Research on Smartkarma have provided insightful coverage on Silgan Holdings Inc., offering a positive outlook on the company’s strategic progress and operational challenges. In a report titled “Can Custom Containers Expansion Serve As A Robust Base and Help Alter The Playing Field? – Major Drivers,” Silgan’s mixed performance in the third quarter of 2024 was discussed, along with the successful acquisition of Weener Packaging. The analysts anticipate this acquisition to boost organic growth, improve margins, and create shareholder value through effective integration and cost synergies, with a goal of achieving targeted leverage levels by the end of 2025.
Furthermore, in another analysis titled “Dealing With Market Competition and Technological Advancements Challenges! – Major Drivers,” Baptista Research highlighted Silgan Holdings‘ strong financial performance in the second quarter of 2024. The company’s President and CEO, Adam Greenlee, emphasized key achievements and strategic advancements that signal progress in operational sectors. Noteworthy was the company’s report of an adjusted EPS surpassing projections due to enhanced volume trends and operational efficiencies across all segments, indicating a positive trajectory for Silgan Holdings.
A look at Silgan Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Silgan Holdings looks to have a solid long-term outlook. With a Value score of 3, it indicates that the company is reasonably priced compared to its intrinsic value. The Dividend score of 3 suggests that Silgan Holdings offers an average dividend yield, appealing to income-oriented investors. In terms of Growth, the score of 3 indicates a moderate growth potential for the company. However, with a Resilience score of 2, it may face some challenges in maintaining stability. On the bright side, the Momentum score of 4 points towards strong upward trends in the company’s performance.
Silgan Holdings Inc. and its subsidiaries focus on manufacturing consumer goods packaging products, including steel and aluminum containers for human and pet food, custom-designed plastic containers, plastic closures and caps, thermoformed plastic tubs, and specialty packaging items. Operating primarily in North America, Silgan Holdings seems to have a promising overall outlook according to the combination of its Smart Scores, showcasing a balanced profile across value, dividend, growth, resilience, and momentum factors for potential investors to consider.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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