Amcor climbs after reaffirming full-year guidance growth
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More news: Amcor shares rose after the business reported an 89% increase in EBITDA, a 70% rise in net sales and reaffirmed its full-year EPS guidance of 12% to 17%.
Shares rose 4.01% to $65.51 at 2:03pm AEDT.
Goldman Sachs analyst Niraj Shah holds a buy view on the company, setting the price target to $86.55 per share in the next 12 months.
Jeffries analyst Ramoun Lazar also holds a buy view, setting the price target to $85.91.
Amcor posts 89% earnings increase, boosted by Berry acquisition
The news: Global packaging company Amcor reported an 89% increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to USD1.75 billion ($2.48 billion), roughly in line with market estimates of USD1.76 billion.
Net income came to USD439 million. Analysts had expected USD820 million, according to Visible Alpha data.
The numbers: Half-year net sales climbed 70% to USD11.2 billion driven by the $13 billion acquisition of US-based Berry Global.
The company reaffirmed its full-year guidance for adjusted EPS of between USD4 to USD4.15, representing growth of 12% to 17%, and expects free cash flow of between USD1.8 billion and USD1.9billion.
The company declared a quarterly dividend of 60 US cents.
The context: Amcor CEO Peter Konieczny said the strong growth in earnings was driven by disciplined execution and synergy benefits from the Berry acquisition at the upper end of expectations.
What they said: "Performance through the first half of the year supports our confidence in reaffirming fiscal 2026 earnings and free cash flow guidance. Portfolio optimisation actions are progressing well, positioning us to be the global leader in consumer packaging,” Konieczny said.
The source: ASX
