Silgan beats Q2 revenue, profit estimates on volume growth
Silgan beats Q2 revenue, profit estimates on volume growth
Overview
U.S. rigid packaging supplier's Q2 revenue rose 7%, beating analyst expectations
Adjusted EPS for Q2 was $0.98, beating analyst expectations
Company attributes sales growth to higher raw material costs and volume gains in select markets
Outlook
Silgan sees full-year 2026 adj net income per diluted share at $3.73-$3.93
Company expects 2026 free cash flow of about $450 mln
Silgan estimates Q3 2026 adj net income per diluted share at $1.21-$1.31
Result Drivers
FRAGRANCE DISPENSING GROWTH - High single digit volume growth in dispensing products for fragrance markets supported segment performance
PET FOOD CONTAINER DEMAND - High single digit volume growth in metal containers for pet food markets offset declines in other categories
RAW MATERIAL COST PASS THROUGH - Net sales growth was primarily due to the contractual pass through of higher raw material costs
Company press release: ID:nBw8PJVHya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $1.64 bln | $1.62 bln (12 Analysts) |
Q2 Adjusted EPS | Beat | $0.98 | $0.96 (12 Analysts) |
Q2 Net Income |
| $75.80 mln |
|
Q2 Basic EPS |
| $0.72 |
|
Q2 Gross Profit |
| $294.90 mln |
|
Q2 Pretax Profit |
| $103.90 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-paper containers & packaging peer group is "buy"
Wall Street's median 12-month price target for Silgan Holdings Inc is $55.00, about 14.6% above its July 28 closing price of $48.01
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
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July 28 - France's Verallia H1 revenue falls on lower selling prices
July 29 - German medical packaging firm Gerresheimer to sell two units to Apax for $1.71 billion
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)