Amcor shares dive as earnings miss consensus
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More news: Shares in Amcor fell in morning trade after the global packaging firm delivered softer than expected June quarter earnings and FY26 guidance was lower than market consensus estimates, according to Visible Alpha.
At 11:23am AEST, Amcor shares had slipped 10.5% to $13.48, the worst performer on the ASX 200.
What they said: Morgan Stanley analysts flagged that earnings before interest and tax for the June quarter was 4% lower than consensus amid a 1.7% year on year fall in sales volumes amid “ongoing weakness” in Amcor’s North American Beverage business.
They also flagged that FY25 earnings per share was 2.5% lower than the guidance midpoint and FY26 earnings per share guidance was 1.5% below consensus. Citi analysts described the earnings per share guidance as “a touch light”.
E&P Financial Group analyst Cameron McDonald said the wealth management firm’s “forecasts have been adjusted slightly with weaker run rate from FY25 impacting the forecast period”. However, E&P’s valuation on Amcor’s stock has increased by 2.2% to $16.25.
Amcor posts 13% rise in annual profit, guides 12-17% earnings growth in FY26
The news: Global packaging company Amcor has reported a 13% rise in full-year net profit after tax to USD1.136 billion ($1.75 billion), and guided for 12-17% earnings growth in FY26, bolstered by its recent $13 billion acquisition of US-based Berry Global.
The numbers: This marks an uptick from last year's net profit of USD1.015 billion and lands roughly in line with average forecasts of USD1.14 billion, according to Visible Alpha data.
Annual net sales climbed 11% to USD15 billion, with fourth-quarter sales up 43% year on year to USD5.1 billion
The company declared a quarterly dividend of 12.75 US cents per share, taking full-year dividends to 51 US cents. This is up from last year's payout of 50 US cents, and matches market estimates.
The context: Amcor chief executive Peter Konieczny said the acquisition of Berry Global, which closed in April, has "already resulted in business wins directly linked to this combination."
Amcor has identified USD650 million in identified synergies out to fiscal 2028. The company said current integration plans are "proceeding in line with expectations" and on track to deliver USD260 million in pre-tax synergy benefits in FY26, driving a 12% year on year accretion.
The sources: ASX, Morgan Stanley research, E&P Financial Group research, Citi research
