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.

Projections

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

President Trump tweeted about his plans to meet with Apple (AAPL) CEO Tim Cook. It's possible that they could discuss Apple’s US manufacturing plans.

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.