Crown Holdings Earnings: Here’s Why Investors Don’t Like These Results

Crown Holdings Inc. (NYSE:CCK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.75%.

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Crown Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.7% to $0.5 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 1.34% to $1.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Crown Holdings Inc. reported adjusted EPS income of $0.5 per share. By that measure, the company beat the mean analyst estimate of $0.49. It missed the average revenue estimate of $2.02 billion.

Quoting Management: Commenting on the quarter, John W. Conway, Chairman and Chief Executive Officer, stated, “Overall we are off to a strong and promising 2013. Globally, beverage can volumes were up 6% in the first quarter, primarily driven by growth in Brazil and Asia Pacific. This is on top of strong double digit improvements for both in the same period last year, and reflects our capacity expansion projects in these growth markets over the last several years. European Beverage also posted a strong start to the year with a 4% increase in sales volumes, while European Food had 2% lower sales volumes.”

Key Stats (on next page)…

Revenue decreased 3.14% from $2.04 billion in the previous quarter. EPS decreased 1.96% from $0.51 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.94 to a profit $0.95. For the current year, the average estimate has moved down from a profit of $3.29 to a profit of $3.28 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)