Silgan Earnings & Revenues Beat Estimates in Q4, Shares Rise 4%

Core Viewpoint - Silgan Holdings Inc. reported record adjusted earnings of 85 cents per share for Q4 2024, exceeding expectations and reflecting a 35% year-over-year increase [1][8]. Financial Performance - Adjusted earnings per share for 2024 were $3.62, up from $3.40 in the previous year, beating the Zacks Consensus Estimate of $3.60 [8]. - Total revenues for Q4 2024 increased to $1.41 billion from $1.34 billion in the prior year, surpassing the Zacks Consensus Estimate of $1.39 billion [2][8]. - Including one-time items, earnings were reported at 42 cents per share, down from 60 cents in the prior-year quarter [2]. Costs and Margins - Cost of goods sold rose 9.4% year over year to $1.17 billion, while gross profit increased by the same percentage to $239 million, resulting in a gross margin of 16.9%, up from 16.3% in the prior year [3]. - Selling, general and administrative expenses increased by 28.1% year over year to $124 million, leading to an operating income of $94 million, down from $126 million in the prior-year quarter [4]. Segment Performance - The Dispensing and Specialty Closures segment saw revenues rise 22.4% year over year to $639 million, driven by the Weener Packaging acquisition, with operating income increasing to $77 million [5]. - The Metal Containers segment experienced an 8.3% decline in revenues to $610 million due to lower volumes, with operating income dropping to $42 million from $56 million [6]. - Custom Containers segment revenues increased to $162 million from $152.5 million, but reported an operating loss of $0.1 million compared to a profit of $6.8 million in the previous year [6]. Cash Flow and Financial Position - At the end of 2024, the company had cash and cash equivalents of $823 million, up from $643 million at the end of 2023, and generated approximately $722 million in cash from operating activities compared to $483 million in 2023 [7]. Future Outlook - For 2025, Silgan expects adjusted earnings per share to be between $4.00 and $4.20, with an anticipated EPS of 74-84 cents for Q1 2025 [9]. Stock Performance - Silgan's shares have increased by 25% over the past year, significantly outperforming the industry growth of 2.2% [10].