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Investing.com - Citi has reiterated its Buy rating on Crown Holdings (NYSE:CCK) with a price target of $129.00, according to a research note released ahead of second-quarter earnings season. The company is scheduled to report earnings in 33 days, with analysts maintaining a consensus Buy recommendation and price targets ranging from $10 to $13.
The firm identified Crown Holdings as its top pick, stating the company is positioned to beat expectations and raise guidance due to strength in the U.S. beverage can segment. According to InvestingPro data, Crown Holdings shows strong financial health metrics, with analysts predicting continued profitability this year. Get access to 8 more exclusive InvestingPro Tips for CCK and comprehensive analysis with a Pro subscription.
Citi analyst Anthony Pettinari noted that investor expectations heading into earnings season appear subdued across the packaging sector, with the exception of the beverage can segment, as underlying consumer packaged goods demand remains sluggish.
The research note indicated that potential tailwinds from favorable foreign exchange rates and benign cost inflation may be overshadowed by questions regarding long-term volume growth, contributing to downbeat investor sentiment and group valuation.
Citi has updated its estimates ahead of the earnings season, reducing its average second-quarter estimates by 2% and its 2025 estimates by 1% across the packaging sector.
In other recent news, Amcor (NYSE:AMCR) plc reported its fiscal third-quarter results, revealing earnings and revenue that fell short of analyst expectations. The company posted adjusted earnings per share of $0.18, missing the anticipated $0.19, and revenue of $3.33 billion, below the forecasted $3.49 billion. Despite this, Amcor completed its merger with Berry Global, a move described by CEO Peter Konieczny as "transformational," enhancing the company’s market position and capabilities. The merger, finalized earlier than expected, positions Amcor as a major player in the packaging industry, with anticipated synergies projected to drive future growth.
In response to the merger, Moody’s upgraded Berry Global’s senior unsecured notes to Baa2, citing the parent guarantee from Amcor. Analysts have shown confidence in Amcor’s prospects following the merger, with Jefferies initiating a Buy rating and Wells Fargo (NYSE:WFC) an overweight rating, both citing the benefits of the merger and potential for earnings growth. Amcor has adjusted its full-year earnings per share guidance to $0.72-$0.74, reflecting the merger’s impacts. The company also declared a quarterly dividend of 12.75 cents per share, marking a slight increase from the previous year. Amcor’s strategic focus on capturing $650 million in synergies over the next three years underscores its commitment to driving value from the merger.
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