Silgan (US:SLGN) ZACKSยท2024-08-06 16:55Core Points - Silgan Holdings Inc. reported adjusted earnings of 88 cents per share for Q2 2024, exceeding the Zacks Consensus Estimate of 87 cents and reflecting a 6% year-over-year improvement [1] - Total revenues decreased by 3.2% year over year to $1.38 billion, missing the Zacks Consensus Estimate of $1.43 billion due to lower raw material costs [2] - The company expects adjusted EPS for 2024 to be between $3.55 and $3.75, with anticipated volume improvements across all segments [9] Financial Performance - The cost of goods sold decreased by 4.4% year over year to $1.13 billion, while gross profit increased by 2.4% to $256 million, resulting in a gross margin of 18.5% compared to 17.5% in the prior year [3] - Adjusted operating profit for Q2 2024 was $165 million, a 2.8% increase from $161 million in the prior year, with an adjusted operating margin of 12% compared to 11.3% [4] Segmental Performances - The Dispensing and Specialty Closures segment saw revenues increase by 1% year over year to $565 million, with adjusted operating income rising to $93 million from $77 million [5] - The Metal Containers segment experienced an 8% decline in revenues to $651 million, with adjusted operating income falling by 22.7% to $58.5 million [6] - The Custom Containers segment reported revenues of $165 million, up from $156 million, with adjusted operating income increasing to $22.5 million from $18.5 million [7] Cash Flow & Position - At the end of Q2 2024, the company had cash and cash equivalents of $303 million, down from $643 million at the end of 2023, with cash used in operating activities amounting to $527 million in the first half of 2024 [8] Price Performance - Silgan's shares have increased by 11.2% over the past year, outperforming the industry's growth of 10.4% [10]