Crown Holdings Earnings Surpass Estimates in Q4, Sales Rise Y/Y

Core Viewpoint - Crown Holdings, Inc. reported strong fourth-quarter 2024 results, with adjusted EPS exceeding expectations and significant year-over-year growth in earnings and margins [1][9]. Financial Performance - Adjusted EPS for Q4 2024 was $1.59, beating the Zacks Consensus Estimate of $1.52 and increasing 28% year over year [1] - Including one-time items, earnings from continuing operations were $3.02 per share, compared to $0.27 in the prior-year quarter [2] - Net sales for Q4 totaled $2.90 billion, a 1.6% increase from $2.86 billion in the previous year, although it missed the consensus estimate of $2.91 billion [3] - Gross profit rose 6% year over year to $650 million, with a gross margin of 22.4%, up from 21.4% in the prior year [4] - Selling and administrative expenses increased 1.4% year over year to $147 million, while total segment operating income rose to $428 million from $382 million [5] Segment Performance - Americas Beverage segment net sales were $1.32 billion, up 2% year over year, with operating profit increasing 7.8% to $275 million [6] - European Beverage segment sales rose 16.3% to $456 million, with operating income significantly improving to $51 million from $18 million [6] - Asia-Pacific segment sales decreased 3.8% to $308 million, with operating profit slightly up to $48 million [7] - Transit Packaging segment sales were $511 million, down from $541 million, with operating profit falling 21.3% to $59 million [7] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of 2024 were $0.92 billion, down from $1.31 billion at the end of 2023 [8] - Cash generated from operating activities was $1.19 billion, compared to $1.45 billion in the prior year [8] - Long-term debt decreased to $6.06 billion from $6.69 billion year over year [8] Annual Performance - For 2024, adjusted EPS was $6.41, surpassing the consensus estimate of $6.35 and improving 9% year over year [9] - Total net sales for the year were $11.80 billion, a decline of 1.7% from the previous year, missing the consensus estimate of $11.81 billion [10] Future Outlook - The company projects full-year adjusted EPS for 2025 to be between $6.60 and $7.00, with expected adjusted free cash flow of $800 million [11] Stock Performance - Crown Holdings' shares have increased by 14.9% over the past year, outperforming the industry growth of 2.8% [12]