By Michael Dabaie
Silgan Holdings Inc. shares were up 3.5%, to $45.15, after it lifted its full year adjusted earnings guidance and reported quarterly results above analyst views.
The supplier of rigid packaging for consumer goods products said it raised its estimate for 2022 adjusted per-share earnings to $3.90 to $4.05, above the FactSet consensus for $3.83 a share. Silgan previously guided for a full-year adjusted profit of $3.80 to $4 a share.
The company pointed to continued strong performance from recent acquisitions, the ability to pass through raw material and other cost inflation, customers’ ability to gradually increase output as they address their supply chain and labor challenges, and ongoing operating efficiencies in each of the company’s segments .
Silgan also guided for second quarter adjusted per-share earnings of 90 cents to $1. FactSet consensus was for 99 cents.
Silgan reported sales for the first quarter were $1.44 billion, up 16.5% and beating FactSet consensus for $1.396 billion. Adjusted EPS of 78 cents was above FactSet 77-cents consensus.
“Our businesses continue to deliver strong operating performance, and we anticipate our customers’ volumes will improve as they cycle over difficult supply chain issues. As a result, we have raised our full-year earnings estimate,” Financial Chief Robert B. Lewis said on the company’s earnings conference call.
Chief Executive Adam Greenlee said on the call that the company’s “strong commercial relationships helped ensure our ability to successfully pass through the unprecedented raw material inflation we are experiencing.”
“These actions allowed us to overcome the known volume headwinds that we faced entering the first quarter in certain portions of our business, the impact from raw materials and other manufacturing cost inflation, and the negative impact of supply chain and production disruptions at several of our customers,” Mr. Greenlee said.
Write to Michael Dabaie at [email protected]
Credit: www.marketwatch.com /