Wall Street expects a year-over-year decline in earnings on higher revenues when Berry Global (BERY) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Berry Global (BERY) , which belongs to the Zacks Containers - Paper and Packaging industry.When looking at the last two reports, this packaging company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.01%, on average, in the last two quarters.For the last reported quarter, Berry Global came out with earnings ...

Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Berry Global (BERY) and AptarGroup (ATR) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stoc ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

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Have you evaluated the performance of Berry Global's (BERY) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this packaging company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth. The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. I ...

Financial Performance - Net sales for the quarter ended June 29, 2024, were $3.161 billion, a decrease of 2% compared to the prior quarter's $3.229 billion, primarily due to decreased selling prices [50]. - Operating income for the quarter increased by 13% to $303 million, driven by a favorable impact from volume increases and a decline in business integration expenses [51]. - The Consumer Packaging North America segment reported net sales of $831 million, a 4% increase from the prior quarter, attributed to 2% organic volume growth and improved product mix [56]. - The Health, Hygiene & Specialties segment experienced a 2% decline in net sales to $647 million, primarily due to decreased selling prices, although operating income increased by 55% to $34 million [58]. - The Flexibles segment's net sales decreased by 2% to $724 million, with operating income slightly declining by 1% to $87 million [59]. - Year-to-date net sales were $9.090 billion, a 5% decrease from the prior year, primarily due to lower selling prices and a 1% volume decline [63]. - The Consumer Packaging International segment's year-to-date net sales declined by 6% to $2.844 billion, impacted by decreased selling prices and divestitures [65]. - The Health, Hygiene & Specialties segment's year-to-date net sales decreased by 5% to $1.896 billion, with operating income down 28% to $64 million due to price cost spread impacts [71]. - Net sales for the year-to-date (YTD) decreased to $2,069 million, a decline of 7% compared to $2,214 million in the prior YTD, primarily due to a $118 million decrease in selling prices and a 2% volume decline [72]. - Operating income increased slightly to $248 million, up 1% from $246 million, driven by a $13 million favorable impact from price cost spread, partially offset by a $9 million increase in depreciation and amortization [72]. - Comprehensive income declined by $337 million from the prior YTD, mainly due to a $218 million unfavorable change in currency translation and a $64 million unfavorable change in the fair value of derivative instruments [73]. Cash Flow and Liquidity - For fiscal 2024, the company projects cash flow from operations of $1.4 billion and free cash flow of $800 million, assuming $600 million of capital spending [48]. - Net cash from operating activities decreased by $193 million from the prior YTD, primarily due to higher working capital needs [75]. - Free cash flow for the YTD was $(176) million, compared to $(70) million in the prior YTD, indicating a decline in cash generation capabilities [77]. - The company had a cash balance of $509 million as of June 29, 2024, primarily located outside the U.S., and plans to refinance long-term debt obligations prior to maturity [78]. - The company repurchased approximately 2.0 million shares for $117 million in the YTD, with $324 million remaining available for share repurchases [77]. - The company’s senior secured credit facilities include $2.0 billion in term loans and a $1.0 billion revolving credit facility, with no borrowings outstanding as of the period end [84]. Foreign Exchange and Compliance - A 10% decline in foreign currency exchange rates would have resulted in a $9 million unfavorable impact on net income for the three quarterly periods ended June 29, 2024 [85]. - The company was in compliance with all covenants related to its $1,000 million asset-based revolving line of credit as of the end of the quarter [74]. Supply Chain Management - The company continues to manage supply chain disruptions and raw material price changes through close collaboration with suppliers and customers [47].

Berry Global Group, Inc. (NYSE:BERY) Q3 2024 Results Conference Call August 2, 2024 10:00 AM ET Company Participants Dustin Stilwell - Investor Relations Kevin Kwilinski - Chief Executive Officer Mark Miles - Chief Financial Officer Conference Call Participants Sahas Apte - UBS Philip Ng - Jefferies George Staphos - Bank of America Securities Mike Roxland - Truth Securities Ghansham Panjabi - Baird Arun Viswanathan - RBC Capital Markets Adam Samuelson - Goldman Sachs Matt Roberts - Raymond James Christopher ...

Financial Data and Key Metrics Changes - The company achieved 2% organic volume growth and reported adjusted EPS growth of 16% year-over-year, amounting to $2.18 per share [6][14] - Operating EBITDA increased by 6% to $546 million compared to the previous year [14][26] - The company expects to generate over $1 billion in free cash flow in fiscal Q4 and anticipates cash proceeds exceeding $2 billion from strategic divestitures within the next year [9][21] Business Line Data and Key Metrics Changes - Consumer Packaging International division saw a revenue decline of 5% due to polymer cost pass-through, but organic volume growth of 1% was noted [15] - Consumer Packaging North America division's revenue increased by 3%, driven by 2% organic volume growth across various markets [17] - The Flexibles division experienced a 2% revenue decline, offset by a 2% organic volume increase [19] - Health, Hygiene and Specialties division's revenue remained flat, with a 2% organic volume increase [20] Market Data and Key Metrics Changes - The company noted a weaker demand environment driven by inflation, but saw improvements in promotional activity from customers [8][34] - In Europe, the company reported a growth rate increase from 5% to 7%, driven by differentiated products and regulatory changes [80] Company Strategy and Development Direction - The company is focused on optimizing its portfolio, applying lean transformation, and enhancing commercial excellence to drive growth [28] - A strategic goal is to increase consumer products focus from over 70% to over 80% of volume through divestitures [9][22] - The company aims to achieve a year-end leverage of 3.5x or lower by the end of fiscal 2024 [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook, citing steady sequential improvement and customer focus on growth over price [8] - The company anticipates low single-digit volume growth in Q4, with potential upside if market conditions improve [39][86] - Management acknowledged the impact of inflation on consumer demand but noted a positive trend in promotional activities [34][117] Other Important Information - The company has reduced net debt by over $3 billion since mid-2019 and returned more than $1.5 billion to shareholders through share repurchases and dividends [23] - The company is in various stages of discussions regarding potential divestitures, which are expected to enhance its focus on higher growth areas [118] Q&A Session Summary Question: Interest expense guidance for Q4 - Management indicated that the increase in interest expense is primarily due to non-cash interest income that fell off in Q3 [31] Question: Market share trends in takeout cups - Management noted that foot traffic has been weaker due to inflation, but promotional activity is increasing, leading to optimism for volume growth [34][35] Question: Update on divestitures and capital deployment - Management confirmed a commitment to achieving a leverage target of 3.5 or lower and indicated that share buybacks are a priority due to undervalued stock [44] Question: Pilot program at Franklin and innovation pipeline - Management reported a 20% improvement in throughput at the Franklin facility and highlighted strong momentum in the innovation pipeline [51][55] Question: EBITDA guidance and cash flow generation - Management clarified that EBITDA guidance remains within the previously discussed range, with resin inflation being a significant factor [62][64] Question: Competitive activity and market dynamics - Management acknowledged increased competition but emphasized their ability to maintain margins and win market share without sacrificing profitability [75][76] Question: Volume growth outlook for fiscal Q4 and 2025 - Management expects similar low single-digit growth in Q4 and anticipates accelerating growth in 2025 based on performance in key markets [86][88]

For the quarter ended June 2024, Berry Global (BERY) reported revenue of $3.16 billion, down 2.1% over the same period last year. EPS came in at $2.18, compared to $1.90 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.21 billion, representing a surprise of -1.44%. The company delivered an EPS surprise of +7.39%, with the consensus EPS estimate being $2.03. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...