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On Tuesday, Mizuho (NYSE:MFG) Securities showed confidence in Crown Holdings (NYSE:CCK) by increasing the stock’s price target to $110 from $105 while keeping an Outperform rating. The adjustment follows Crown Holdings’ release of its first quarter 2025 earnings, which surpassed expectations. With a current market capitalization of $10.38 billion and trading at $89.78, InvestingPro analysis suggests the stock is currently undervalued, supporting Mizuho’s bullish stance.
Crown Holdings reported a robust first quarter with earnings per share (EPS) of $1.67, significantly outstripping the guidance midpoint of $1.25 and beating the $1.25 and $1.23 estimates from Mizuho Securities USA and the broader market consensus, respectively. The impressive results were attributed to strong beverage can shipments. The company maintains a "GREAT" financial health score according to InvestingPro, with a P/E ratio of 25.2 and a modest dividend yield of 1.16%. For deeper insights into Crown Holdings’ financial health metrics and additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
Mizuho analysts have revised their 2025 EPS midpoint estimate for Crown Holdings to $6.90, up from the previous $6.80, with a new range of $6.70 to $7.10 compared to the prior $6.60 to $7.00. This forecast is slightly above the current consensus of $6.80 and $6.79. For the second quarter of 2025, the company is guided to an EPS midpoint of $1.85, with a range of $1.80 to $1.90, which is in line with market expectations. This positive outlook aligns with InvestingPro data showing consistent profitability over the last twelve months.
The firm’s analysts are keen to address several key questions on the upcoming earnings call. These include the sustainability of the current growth in beverage can volume, the factors behind the strong volume growth in North America, Crown Holdings’ capital deployment priorities, the impact of tariffs on aluminum and empty cans on consumption, and the reasons behind the muted outlook for the second half of the year.
Investors and analysts are invited to join the conference call, where these topics will be discussed further. The call is scheduled for 9 AM and can be accessed by dialing 630-395-0194 with the reference "packaging."
In other recent news, Crown Holdings Inc. reported first-quarter earnings and revenue that surpassed analyst expectations. The company posted adjusted earnings per share of $1.67, significantly higher than the consensus estimate of $1.23. Revenue reached $2.89 billion, exceeding the anticipated $2.82 billion and marking a 3.7% increase year-over-year. Crown Holdings also raised its full-year 2025 adjusted EPS guidance to a range of $6.70 to $7.10, surpassing the previous outlook and the $6.80 analyst consensus. For the second quarter, the company projects adjusted EPS between $1.80 and $1.90, aligning with Wall Street’s estimate of $1.80. Segment income for the first quarter was reported at $398 million, up 29% from the previous year. The company anticipates generating approximately $800 million in adjusted free cash flow in 2025. Management highlighted strong performances in global beverage can businesses, with a 24% increase in combined first-quarter beverage can segment income over the prior year.
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