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Silgan Holdings (SLGN) got here out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.60 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 8.22%. 1 / 4 in the past, it was anticipated that this packaging merchandise provider would put up earnings of $1.03 per share when it truly produced earnings of $1.02, delivering a shock of -0.97%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates thrice.
The sustainability of the inventory’s speedy value motion primarily based on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
Silgan shares have misplaced about 3.6% because the starting of the yr versus the S&P 500’s decline of -7.5%.
What’s Subsequent for Silgan?
Whereas Silgan has outperformed the market up to now this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified these days.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested ranking device just like the Zacks Rank, which has a formidable observe document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Silgan: unfavorable. Whereas the magnitude and path of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You possibly can see the entire checklist of right this moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It is going to be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.85 on $1.4 billion in revenues for the approaching quarter and $3.74 on $6.3 billion in revenues for the present fiscal yr.
Traders must be conscious of the truth that the outlook for the business can have a cloth influence on the efficiency of the inventory as effectively. When it comes to the Zacks Business Rank, Containers – Steel and Glass is at the moment within the backside 6% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One different inventory from the identical business, Crown Holdings (CCK), is but to report outcomes for the quarter ended December 2021. The outcomes are anticipated to be launched on February 8.
This packaging firm is predicted to put up quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +2.7%. The consensus EPS estimate for the quarter has been revised 0.4% greater during the last 30 days to the present degree.
Crown Holdings’ revenues are anticipated to be $2.8 billion, down 5.6% from the year-ago quarter.
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Silgan Holdings Inc. (SLGN): Free Inventory Evaluation Report
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