Amcor Plc AMCR is scheduled to report second-quarter fiscal 2025  results on Feb. 4, after the closing bell.

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

The Zacks Consensus Estimate for AMCR’s second-quarter revenues is pegged at $3.44 billion, indicating 5.8% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at 16 cents per share. The consensus estimate has been unchanged in the past 60 days and indicates in-line results with the year-ago quarter.

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AMCR’s Earnings Surprise History

Amcor’s earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and matched in the other two. AMCR delivered an average surprise of 3.14%.

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What the Zacks Model Unveils for Amcor

Our proven model does not conclusively predict an earnings beat for Amcor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Amcor is 0.00%.

Zacks Rank: Amcor currently carries a Zacks Rank #4 (Sell).

Factors Likely to Have Shaped AMCR’s Q2 Performance

Amcor’s total volume growth had been in the negative territory for seven straight quarters till the third quarter of fiscal 2024 as inflationary pressures weighed on consumer spending. Volumes picked up with 1% growth in the fourth quarter of 2024 and 2% in the first quarter of fiscal 2025. 

We expect 4.9% growth in volumes in the fiscal second quarter. This will be driven by improved performance in both its segments. Overall price/mix benefits are expected to be a negative 0.7% for the quarter.

Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials because of market dynamics and higher rates of inflation impacting other costs. The impacts of this are expected to reflect in the company’s fiscal second-quarter earnings results. AMCR has been proactively lowering costs, which will offset these headwinds.

Our Projections for Amcor’s Segments in Q2

The Flexible segment returned to volume growth (3%) in the fourth quarter of fiscal 2024 after seven straight quarters of declines. The segment reported volume growth of 3% in the first quarter of fiscal 2025. Backed by solid customer demand across all regions and many product categories, we project volume growth of 5.3% for the segment. The price/mix is expected to be an unfavorable 1%. Our sales projection for the Flexibles segment is pegged at $2.59 billion, indicating 4% year-over-year growth.

We expect the Rigid Packaging segment to have witnessed a volume recovery after eight straight quarters of declines. Our model estimates a 3.6% rise in volumes for the segment and a price/mix increase of 0.3%. The sales projection for the segment is $0.8 billion, indicating 4.5% year-over-year growth.

Recent Major Developments for Amcor

Amcor, on Dec. 30., announced the completion of the sale of its 50% interest in Bericap North America for $122 million, with the proceeds used to reduce debt.
Total sales for the joint venture were approximately $190 million in 2024 and adjusted EBIT was approximately $19 million, both of which were previously fully consolidated under Amcor’s Rigid Packaging business. Adjusted net income attributable to Amcor for fiscal 2024 was approximately $8 million. The company had stated that net of the resulting reduction in interest expense, the transaction is not expected to have an impact on its financial outlook for fiscal 2025.

On Jan. 23, 2025, Amcor and Berry Global Group, BERY announced that they have achieved an important milestone toward the completion of their previously announced all-stock transaction. This refers to the filing of the definitive joint proxy statement with the U.S. SEC. The statement includes notices of Amcor and Berry shareholder meetings that will both take place on Feb. 25, 2025.

The transaction has been unanimously recommended by the boards of directors of both companies. It is expected to close by the middle of this year. This deal, bringing two highly complementary businesses together, will create a global leader in consumer and healthcare packaging solutions. It will have a broader and scaled flexible film, containers, closures and dispensing packaging portfolio.

AMCR’s Share Price Performance

Over the past year, shares of Amcor have gained 3% compared with the industry’s 11.7% growth.

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Stocks to Consider

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Flowserve Corporation FLS is scheduled to release its fourth-quarter 2024 results on Feb. 18. It has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FLS’ earnings is pegged at 77 cents per share, which indicates year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 10.8%.

Stanley Black & Decker SWK, expected to release its fourth-quarter 2024 results on Feb. 5, has an Earnings ESP of +3.82% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for SWK’s earnings is pegged at $1.28 per share, indicating year-over-year growth of 39%. It has a trailing four-quarter average surprise of 18.6%.

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Amcor PLC (AMCR) : Free Stock Analysis Report

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