29 Jul

How Did Silgan Holdings’ 2Q16 Earnings Turn Out?

WRITTEN BY Gabriel Kane

Price movement 

Silgan Holdings (SLGN) has a market cap of $3.0 billion. It fell by 5.1% to close at $49.99 per share on July 27, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -4.5%, 2.0%, and -6.3%, respectively, on the same day. SLGN is trading 3.5% below its 20-day moving average, 2.0% below its 50-day moving average, and 3.4% below its 200-day moving average.

How Did Silgan Holdings’ 2Q16 Earnings Turn Out?

Related ETF and peers

The Vanguard Materials ETF (VAW) invests 0.30% of its holdings in Silgan. The ETF tracks a very broad market-cap-weighted index of US materials companies. The YTD price movement of VAW was 16.1% on July 27.

The market caps of Silgan’s competitors are as follows:

  • Ball (BLL) — $10.1 billion
  • Crown Holdings (CCK) — $7.5 billion
  • Berry Plastics Group (BERY) — $5.0 billion

Performance of Silgan Holdings in 2Q16

Silgan Holdings reported 2Q16 net sales of $874.6 million, a fall of 4.3% from the net sales of $914.2 million in 2Q15. Sales of metal containers, closures, and plastic containers fell by 4.4%, 0.29%, and 9.7%, respectively, between 2Q15 and 2Q16. It reported rationalization charges of $5.0 million in 2Q16, compared with $1.0 million in 2Q15. The company’s gross profit margin and income from operations fell by 0.16% and 13.5%, respectively.

Its net income and EPS (earnings per share) fell to $33.3 million and $0.55, respectively, in 2Q16, compared with $42.2 million and $0.70, respectively, in 2Q15. It reported adjusted EPS of $0.60 in 2Q16, a fall of 15.5% from 2Q15.

Silgan’s cash and cash equivalents and inventories rose by 20.6% and 28.4%, respectively ,between 4Q15 and 2Q16. Its debt-to-equity ratio rose to 4.2x in 2Q16, compared with 4.0x in 4Q15.


The company has projected adjusted EPS in the range of $2.70 to $2.90, which excludes rationalization charges for fiscal 2016. This guidance reflects a slow start to the European season and low demand from US pack customers. It also expects adjusted EPS in the range of $1.20 to $1.30, which excludes rationalization charges for fiscal 3Q16.

In the next part of this series, we’ll take a look at Coca-Cola.

Latest articles

CrowdStrike (CRWD) fell 9.5% today to close at $54.52. Analyst Walter Pritchard initiated coverage on CRWD with a “sell” rating and a target price of $43.

Micron (MU) stock was up 4.21% on Friday and closed at $45.10. MU was trading 12.2% below its 52-week high of $51.39 for a market cap of $49.9 billion.

Top utility stocks trended lower and lost 1.3% last week. Broader markets were positive but cautious on trade talk optimism, gaining 0.7% last week.

Analyst Ming-Chi Kuo expects Apple to launch the iPhone SE2 in Q1 2020. Priced at $399, it could help Apple gain traction in India and Southeast Asia.

Disney-owned Hulu plans to introduce video downloads, which Netflix has offered for three years. Disney hopes to narrow Netflix’s competitive advantage.

Ireland’s privacy watchdog has concluded its investigation into Facebook over its compliance with the European Union’s data protection law.