Core Viewpoint - Berry Global reported strong first-quarter fiscal 2025 earnings, exceeding estimates, with adjusted earnings of $1.09 per share and net sales of $2.39 billion, reflecting a year-over-year increase in both metrics [2][11]. Financial Performance - Adjusted earnings per share increased by 5% year over year, surpassing the Zacks Consensus Estimate of $1 [2]. - Net sales reached $2.39 billion, exceeding the consensus estimate of $2.34 billion, with a year-over-year increase of 2.2% driven by higher selling prices and organic volume growth of 2% [2]. - Operating EBITDA rose by 3.8% year over year to $378 million, while operating income decreased by 7.9% to $152 million [7]. Segment Analysis - Consumer Packaging - International net sales were $885 million, down 3.4% year over year, with operating income decreasing by 3.4% to $28 million [4]. - Consumer Packaging - North America reported net sales of $769 million, up 10% year over year, with operating income slightly decreasing by 1.7% to $59 million [5]. - The Flexibles segment generated net sales of $731 million, a 1.8% year-over-year increase, with operating income down 14.5% to $65 million [6]. Cost and Cash Flow - Cost of goods sold increased by 1.4% to $2.9 billion, while selling, general, and administrative expenses rose by 8.3% year over year to $223 million [7]. - The company reported a free cash outflow of $488 million in the first three months of fiscal 2025, compared to $336 million in the prior-year period [9]. Balance Sheet - At the end of the first quarter, cash and cash equivalents stood at $1.2 million, down from $1.1 billion at the end of fiscal 2024, while total debt decreased to $8.1 billion from $8.3 billion [8]. Fiscal Guidance - Berry Global reaffirmed its fiscal 2025 guidance, expecting adjusted earnings between $6.10 and $6.60 per share and cash flow from operations in the range of $1.125 to $1.225 billion [11]. Market Sentiment - Recent estimates have shown a downward trend, with the consensus estimate shifting down by 8.4% [12]. - Berry Global holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14].
Berry Global (BERY) Up 0.2% Since Last Earnings Report: Can It Continue?