Amcor shares lift after meeting estimates, reaffirming guidance
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More news: Shares in Amcor are up 3.4% to $16.24 in early trading on the ASX after the packaging giant reported second quarter profit and revenue largely in line with estimates and reaffirmed its 2025 earnings forecast of 72 to 76 cents per share.
Citi analysts said while the report was a touch light on earnings, volumes were positive in both segments and the company reiterated its guidance.
Morgan Stanley analysts said the result was in line with consensus and guidance was maintained. The analysts maintained their 'equal-weight' rating on the stock.
What they said: "Business performance has generally been as flagged. The Berry transaction remains the key catalyst, albeit the close is not expected until mid-year. We expect a relatively rangebound share price until that point," they said in a note.
Amcor holds 2025 guidance amid sales dip
The news: Packaging giant Amcor reported second-quarter revenue of USD3.24 billion, missing consensus expectations of USD3.35 billion, as weak consumer spending and healthcare destocking weighed on demand.
The numbers: The company cited a 1% decline in overall sales due to lower demand in North America’s healthcare and beverage sectors. Despite that, net income rose 21.6% year over year to USD163 million, and volumes increased 2.3%.
Flexible packaging sales grew 1.2% to USD2.51 billion, while rigid packaging fell 5.2% to $730 million.
The context: During the earnings call, executives said tariff risks were mitigated by regional supply chains and cost-pass-through mechanisms, according to media reports.
The company reaffirmed its 2025 earnings forecast of 72 to 76 cents per share and expects to finalise its USD8.4 billion acquisition of Berry Global by mid-year.
It projected adjusted free cash flow of USD900 million to USD1 billion for fiscal 2025.
Berry reported a 2% increase in quarterly sales to USD2.39 billion and completed the sale of its tape business.
The sources: Amcor release, Packaging Dive
