Amcor (NYSE:AMCR) Announces Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Amcor (NYSE:AMCR) posted its quarterly earnings results on Wednesday. The company reported $0.95 earnings per share for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.01), FiscalAI reports. Amcor had a return on equity of 15.92% and a net margin of 4.71%. The company had revenue of $6.13 billion for the quarter, compared to analysts’ expectations of $5.75 billion. During the same period in the prior year, the business earned $0.11 EPS.

Here are the key takeaways from Amcor’s conference call:

• Organic volumes grew 1%, the fourth consecutive quarter of sequential improvement, with focus categories up 3%; management said October volumes were in line with September. Growth was broad across regions, with pet food, food service and China among the areas highlighted.
• Amcor captured $60 million in quarterly synergies and reported $170 million in annual sales from new growth-synergy awards. Management reaffirmed its $650 million three-year synergy target, expects to achieve most of it by the end of 2027, and is targeting double-digit adjusted EPS growth in 2027.
• The company lowered its transition-period adjusted EPS outlook to $1.70–$1.80 per share from $1.80–$1.90, citing the timing of higher energy and distribution costs. Management estimated gross costs of more than $100 million, with nearly half offset so far, and expects pricing and productivity actions to address the pressure by year-end.
• Free cash outflow was $820 million, and leverage rose to 3.76 times; management attributed about $500 million of working capital pressure to the Middle East conflict. It expects cash flow to be neutral for the transition period and aims to recover the working capital by the end of 2027, targeting leverage of about 3 times.
• The board approved a modest quarterly dividend increase to $0.66 per share. Management described the increase as reflecting confidence in business momentum and disciplined capital allocation.

Amcor Stock Down 7.0%

Shares of Amcor stock traded down $3.39 on Thursday, hitting $45.11. 2,427,754 shares of the company’s stock traded hands, compared to its average volume of 4,515,256. The stock has a market cap of $20.86 billion, a P/E ratio of 19.11, a PEG ratio of 2.94 and a beta of 0.56. The company has a quick ratio of 0.76, a current ratio of 1.25 and a debt-to-equity ratio of 1.17. The firm’s 50-day moving average is $44.05 and its 200 day moving average is $43.13. Amcor has a 52-week low of $36.25 and a 52-week high of $50.94.

Amcor Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 16th. Shareholders of record on Wednesday, November 25th will be given a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 5.9%. The ex-dividend date of this dividend is Wednesday, November 25th. This is a positive change from Amcor’s previous quarterly dividend of $0.65. Amcor’s dividend payout ratio is currently 110.17%.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on AMCR. Weiss Ratings raised Amcor from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 29th. JPMorgan Chase & Co. downgraded Amcor from an “overweight” rating to a “neutral” rating and raised their price objective for the stock from $44.00 to $47.00 in a report on Monday, August 17th. UBS Group reaffirmed a “buy” rating on shares of Amcor in a research note on Thursday. Truist Financial boosted their target price on Amcor from $51.00 to $53.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Citigroup restated a “buy” rating and issued a $52.00 price target (up from $47.00) on shares of Amcor in a report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $49.54.

Key Amcor News

Here are the key news stories impacting Amcor this week:

• Positive Sentiment: Truist raised its price target to $53 from $51 and maintained a Buy rating, signaling confidence in potential upside. Truist raises Amcor price target
• Positive Sentiment: Amcor increased its quarterly dividend 1.5%, to $0.66 per share ($2.64 annualized), supporting the stock’s income appeal.
• Positive Sentiment: The company introduced a lightweight closure designed to improve recyclability, a product-development step that could support sustainability goals. Amcor recyclable closure announcement
• Neutral Sentiment: First-quarter revenue of $6.13 billion exceeded the $5.75 billion analyst estimate, but the results were mixed overall. Amcor first-quarter results
• Negative Sentiment: Quarterly EPS of $0.95 narrowly missed the $0.96 consensus, and Deutsche Bank cut its rating from Buy to Hold. These developments may temper the positive analyst and dividend news. Amcor earnings miss

About Amcor

Amcor plc (NYSE: AMCR) is a global packaging company that develops and produces packaging solutions for food, beverage, pharmaceutical, medical, personal care, household, and other consumer and industrial products. Its offerings include flexible packaging, rigid containers, closures, bottles, specialty cartons, and related packaging systems designed to protect products, support supply chains, and improve convenience and sustainability.

The company serves customers across North America, Latin America, Europe, Asia-Pacific, and other international markets.