Shares of Silgan Holdings Inc. SLGN moved up 4% since it reported record adjusted earnings of 85 cents per share in fourth-quarter 2024 on Wednesday, beating the Zacks Consensus Estimate of 82 cents. The bottom line increased 35% year over year and was within the company’s guidance of 78-88 cents. 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Including one-time items, earnings were 42 cents per share compared with 60 cents in the prior-year quarter.

Total revenues increased year over year to $1.41 billion from the prior-year quarter’s $1.34 billion. The top line also beat the Zacks Consensus Estimate of $1.39 billion.

SLGN’s Q4 Costs & Margins

In fourth-quarter 2024, the cost of goods sold increased 9.4% year over year to $1.17 billion. The gross profit increased 9.4% to $239 million. The gross margin was 16.9% compared with the prior-year quarter’s 16.3%.

Selling, general and administrative expenses were $124 million in the reported quarter, up 28.1% year over year. The company reported an operating income of $94 million in the quarter compared with $126 million in the prior-year quarter. The operating margin was 6.7% in the reported quarter compared with the prior-year quarter’s 9.4%.

Silgan’s Q4 Segmental Performance

Revenues in the Dispensing and Specialty Closures segment rose 22.4% year over year to $639 million in the fourth quarter, primarily driven by the impacts of the Weener Packaging acquisition. The operating income for the segment was $77 million in the fourth quarter of 2024 compared with $68 million in fourth-quarter 2023. The upside was driven by favorable pricing.

The Metal Containers segment’s revenues in the quarter declined 8.3% year over year to $610 million due to lower volumes in the fruit and vegetable markets. The segment’s operating income in the quarter under review was $42 million, down from the prior-year quarter’s $56 million. 

In the Custom Containers segment, revenues were $162 million compared with the year-ago quarter’s $152.5 million. The segment reported an operating loss of $0.1 million against the previous year’s operating income of $6.8 million.

SLGN’s Financial Updates

The company had cash and cash equivalents of $823 million at the end of 2024 compared with $643 million at the end of 2023. It generated around $722 million in cash from operating activities in 2024 compared with $483 million in 2023.

Silgan’s 2024 Performance

SLGN reported adjusted earnings per share of $3.62 for 2024 compared with $3.40 in the prior year. Earnings beat the Zacks Consensus Estimate of $3.60. Including one-time items, the bottom line was $2.58, down 13% from the $2.98 reported in 2023.

Sales moved down 2.2% to $5.85 billion from the prior-year figure of $5.99 billion. The top line beat the Zacks Consensus Estimate of $5.82 billion.

SLGN’s 2025 Outlook

Silgan expects 2025 adjusted earnings per share between $4.00 and $4.20. For first-quarter 2025, SLGN anticipates adjusted earnings per share (EPS) of 74-84 cents.

Silgan Stock’s Price Performance

The company’s shares have gained 25% in the past year compared with the industry’s growth of 2.2%.

Image Source: Zacks Investment Research

SLGN’s Zacks Rank

Silgan currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Another Packaging Stock in Q4

Packaging Corporation of America PKG reported adjusted EPS of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year. The upside was driven by higher prices and mix, and improved volume in both segments, as well as lower freight and logistics expenses. However, these gains were somewhat offset by an increase in operating costs, scheduled maintenance outage expenses, depreciation expenses and other expenses.

Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the Zacks Consensus Estimate of $2.13 billion.

Packaging Stocks Awaiting Results

AptarGroup, Inc. ATR is scheduled to release its fourth-quarter 2024 results on Feb. 6. The Zacks Consensus Estimate for ATR’s fourth-quarter 2024 earnings is pegged at $1.26 per share, indicating year-over-year growth of 4%.

The consensus estimate for AptarGroup’s top line is pegged at $858.7 million, indicating an increase of 2.4% from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 6.1%.

Sonoco SON, scheduled to release fourth-quarter 2024 results on Feb. 18, has a trailing four-quarter average surprise of 1%. The Zacks Consensus Estimate for SON’s fourth-quarter 2024 earnings is pegged at $1.18 per share, implying year-over-year growth of 15.7%.

The consensus estimate for the company’s top line is pegged at $1.67 billion, indicating a rise of 1.9% from the prior-year reported figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report

Sonoco Products Company (SON) : Free Stock Analysis Report

Packaging Corporation of America (PKG) : Free Stock Analysis Report

AptarGroup, Inc. (ATR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research