Silgan Holdings Earnings: Everything You Must Know Now

Silgan Holdings Inc. (NASDAQ:SLGN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Silgan Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.55% to $0.63 in the quarter versus EPS of $0.55 in the year-earlier quarter.

Revenue: Rose 7.11% to $880 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Silgan Holdings Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company missed the mean analyst estimate of $0.65. It beat the average revenue estimate of $865.39 million.

Quoting Management: “Our businesses generally performed as expected and we delivered record second quarter adjusted net income per diluted share of $0.63, an increase of nearly 15 percent over the same period in 2012,” said Tony Allott, President and CEO. “Our metal container business benefited from continued volume growth, which more than offset ongoing economic challenges in Europe. Our plastic container business benefited from the inclusion of the plastic food container operations, continued improvements in operating performance and a more favorable product mix, which were partially offset by expected volume declines as we continue to rebalance the portfolio of the business. Our closure business performed well in the face of volume declines in single-serve beverages in the U.S. as a result of much cooler weather conditions this spring versus unseasonably warm weather in the second quarter of 2012. Internationally, both the metal container and closure businesses were challenged by economic uncertainty caused by the ongoing political instability in the Middle East and Venezuela,” continued Mr. Allott. “Primarily as a result of the challenges in Venezuela, we are revising our full year 2013 earnings estimate of adjusted net income per diluted share to a range of $3.00 to $3.15,” concluded Mr. Allott.

Key Stats (on next page)…

Revenue increased 10.59% from $795.74 million in the previous quarter. EPS increased 36.96% from $0.46 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.36 and has not changed. For the current year, the average estimate is a profit of $3.11, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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