Volatile post-earnings mover: Crown Holdings Inc. (NYSE:CCK)

Crown Holdings Inc. (NYSE:CCK) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.69 per share on revenue of $1.89B. Analysts had been modeling earning per share of $0.63 with $2.03B in revenue.

Crown Holdings Inc. (NYSE:CCK) announced its financial results for the first quarter ended March 31, 2016.

First Quarter Highlights

• Earnings per share $0.57 versus $0.32 in 2015


• Adjusted earnings per share $0.69 versus $0.53 in 2015


• Constant currency adjusted earnings per share up 40% over prior year


• Constant currency segment income up 20%


• Global beverage can volumes grew 7%


• Beverage can growth projects on schedule

Net sales in the first quarter were $1,893 million compared to $1,997 million in the first quarter of 2015, and included $85 million of unfavorable currency translation impact in 2016 compared to 2015.

Segment income (a non-GAAP measure) increased to $221 million in the first quarter compared to $192 million in the first quarter of 2015, and included $10 million of unfavorable currency translation impact.

Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated, “We are very pleased with the Company’s performance during the first quarter and are on track for an excellent 2016.  Adjusted earnings per share rose 30% and segment income increased 15% over the prior year, led by strong results in Americas Beverage, European Beverage and European Food.

Net income attributable to Crown Holdings in the first quarter was $79 million compared to $44 million in the first quarter of 2015.  Reported diluted earnings per share were $0.57 in the first quarter of 2016 compared to $0.32 in 2015.  Adjusted diluted earnings per share increased to $0.69 over the $0.53 in 2015 and included $0.05 per share of unfavorable currency translation impact.

Non-GAAP Measures
Segment income and free cash flow are not defined terms under U.S. generally accepted accounting principles (non-GAAP measures).  In addition, the information presented excluding the impact of currency translation, regarding revenue, segment income, adjusted net income, the adjusted effective tax rate and adjusted diluted earnings per share does not conform to GAAP and includes non-GAAP measures.  Non-GAAP measures should not be considered in isolation or as a substitute for net income, the effective tax rate, diluted earnings per share or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to calculations of similarly titled measures by other companies.

Crown Holdings Inc. earnings per share showed an increasing trend of 1.1% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 426%.Analysts project EPS growth over the next 5 years at 9%. It has EPS annual growth over the past 5 fiscal years of 7.2% when sales grew 2. It reported -5.2% sales drop, and 79.5% EPS growth in the last quarter.

The stock is trading at $52.17, up 20.48% from 52-week low of $43.3. The stock trades down -8.12% from its peak of $56.78 and 13.09% above the consensus price target of $59. Its volume clocked up at 0.8 million shares which is lower than the average volume of 0.91 million shares. Its market capitalization currently stands at $7.24B.