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Investing.com - Amcor Plc. (NYSE:AMCR), the $22.9 billion packaging company, is falling after Raymond James maintained its Market Perform rating following the company’s fourth-quarter earnings report that fell short of expectations. According to InvestingPro data, two analysts have recently revised their earnings estimates downward for the upcoming period.
The packaging company reported adjusted earnings per share of $0.20 for its fiscal fourth quarter of 2025, below both Raymond James and consensus estimates of $0.21, primarily due to weaker-than-expected volume performance. Amcor experienced a 2% volume decline versus expectations of flat performance, with weakness in both its Flexibles segment and Rigid packaging division. The company maintains a solid financial foundation with $13.46 billion in trailing twelve-month revenue and an EBITDA of $1.9 billion.
Amcor’s fiscal year 2026 adjusted EPS guidance came in slightly below consensus at the midpoint, though Raymond James noted potential conservatism in the volume projections. The company provided a strong free cash flow outlook for fiscal 2026 despite anticipating $220 million in cash integration and transaction costs. InvestingPro analysis shows Amcor maintains an attractive 5.13% dividend yield and has raised dividends for six consecutive years, making it a notable consideration for income investors. The stock’s low volatility profile, with a beta of 0.74, may appeal to stability-focused investors.
Raymond James highlighted Amcor’s portfolio optimization plans, which could include divesting its $1.5 billion North American beverage business that has been experiencing volume declines since fiscal 2023. The company is also considering selling smaller businesses with combined sales of approximately $1 billion, with these smaller divestitures potentially occurring within the next 12 months. Get deeper insights into Amcor’s strategic moves and comprehensive financial analysis through the detailed Pro Research Report, available exclusively on InvestingPro.
Amcor reaffirmed its synergy expectations from the Berry acquisition, projecting $650 million in synergies by year three, with 40% or $260 million to be realized in fiscal 2026, which aligns with market expectations. The company maintains a GOOD Financial Health Score according to InvestingPro metrics, though current trading levels suggest the stock is slightly overvalued relative to its Fair Value.
In other recent news, Amcor plc reported fourth-quarter adjusted earnings that did not meet analyst expectations. Despite this shortfall, the company provided an optimistic forecast for strong growth in fiscal 2026, driven by its acquisition of Berry Global. The acquisition is expected to bring significant synergies, according to BofA Securities, which maintained its Buy rating and a price target of $10.30 for Amcor. BofA Securities highlighted these synergies and Amcor’s current valuation as key factors that could enhance the company’s stock performance. The research firm remains positive on the potential benefits from the Berry Global acquisition, even though Amcor’s fourth fiscal quarter showed weak volumes and unchanged synergy guidance. These developments are part of Amcor’s recent activities aimed at strengthening its market position. Investors are keeping a close watch on how these factors will influence the company’s financial trajectory in the coming years.
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