STAMFORD, Conn. - Silgan Holdings Inc. (NASDAQ: NYSE:SLGN), a leader in sustainable rigid packaging solutions, reported its first quarter 2024 financial results with adjusted earnings per share (EPS) at the higher end of its estimated range.
The company achieved an adjusted EPS of $0.69, surpassing analyst expectations by $0.03. However, revenue fell short of consensus estimates, coming in at $1.32 billion against the anticipated $1.37 billion.
Compared to the same quarter last year, Silgan's net sales saw a decline of 7%, dropping from $1.42 billion to $1.32 billion. This decrease was primarily attributed to lower volumes and the pass-through of reduced raw material costs. The company's net income also experienced a downturn, settling at $55.2 million or $0.52 per diluted share, a decrease from the previous year's $72.0 million or $0.65 per diluted share.
Adam Greenlee, President and CEO of Silgan, expressed confidence in the company's performance despite the revenue shortfall. "Our global dispensing business is poised for growth through market-leading innovation and strong end-market demand," said Greenlee. He also noted the resilience of consumer demand for food and beverage products and the sequential improvement in the Custom Containers business volumes.
For the full year 2024, Silgan has confirmed its adjusted EPS forecast to be between $3.55 and $3.75, which represents a 7% increase at the midpoint over the adjusted net income per diluted share of $3.40 in 2023. This guidance is slightly below the analyst consensus of $3.66. The company expects volumes in all segments to surpass 2023 levels and projects a free cash flow of approximately $375 million for the year, up from $356.7 million in 2023.
Looking ahead to the second quarter of 2024, Silgan anticipates low to mid-single-digit volume growth in its Dispensing and Specialty Closures segment and low single-digit volume growth in the Custom Containers segment, with comparable volumes in the Metal Containers segment relative to the prior year. The company estimates an adjusted EPS for the second quarter in the range of $0.82 to $0.92, a 5% increase at the midpoint compared to $0.83 in the second quarter of 2023.
Silgan's commitment to delivering shareholder value is underscored by its multi-year $50 million cost reduction program, which is on track to achieve $20 million in savings for 2024.
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