Silgan Holdings Earnings: Here’s Why Shares are Down Now

Silgan Holdings Inc. (NASDAQ:SLGN) delivered a profit and missed Wall Street’s expectations, AND 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 0.18%.

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Silgan Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8% to $0.46 in the quarter versus EPS of $0.50 in the year-earlier quarter.

Revenue: Rose 3.56% to $795.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Silgan Holdings Inc. reported adjusted EPS income of $0.46 per share. By that measure, the company missed the mean analyst estimate of $0.47. It missed the average revenue estimate of $811.96 million.

Quoting Management: “We are pleased with our first quarter 2013 results, as our businesses performed as expected and we delivered adjusted net income per diluted share of $0.46, despite a temporarily high tax rate. In addition, we successfully completed our tender offer for $250 million of our stock and acquired a small closures operation that expands our closures presence in Australia,” said Tony Allott, President and CEO. “Our metal container business benefited from strong soup and pet food sales in North America and continued to reduce inventory in line with our working capital goals. Our plastic container business delivered solid operating performance in the face of the negative impact of increases in resin costs and volume realignment in our legacy business. Our closure business was also negatively impacted by significant increases in resin costs and the devaluation of currency in Venezuela. Macroeconomic conditions in Europe continue to be challenging with little sign of economic recovery in the near term,” continued Mr. Allott. “Based on our first quarter performance, we remain positive in our outlook for the year and as a result are confirming our full year 2013 earnings estimate of adjusted net income per diluted share in the range of $3.05 to $3.20,” concluded Mr. Allott.

Key Stats (on next page)…

Revenue decreased 7.35% from $858.8 million in the previous quarter. EPS decreased 2.13% from $0.47 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 $0.63 to a profit $0.64. For the current year, the average estimate is a profit of $3.12, which is the same with that ninety days ago.

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

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