Silgan Shares Rise 3% Despite Disappointing Results but Positive Outlooks

STAMFORD, Conn. - Despite reporting third-quarter earnings that fell short of analyst forecasts, Silgan Holdings Inc. (NYSE:SLGN) experienced a 3.96% increase in its stock after providing a positive full-year outlook.

The packaging products manufacturer reported adjusted earnings of $1.21 per share for the third quarter, below the consensus estimate of $1.24. Revenue totaled $1.75 billion, falling short of analysts' expectations of $1.83 billion and reflecting a 3% decrease compared to the same period last year.

Despite missing earnings expectations, Silgan narrowed its adjusted earnings per share (EPS) forecast for the full year 2024 to a range of $3.55 to $3.65, down from a previous estimate of $3.55 to $3.75. The midpoint of this new range represents a 6% increase over the 2023 adjusted EPS of $3.40.

President and CEO Adam Greenlee stated, "Our third-quarter results continue to benefit from the success of our long-term strategic growth initiatives, the strength of the Silgan portfolio, and the capabilities and agility of our operations teams."

The company's Distribution and Specialty Closures segment recorded double-digit growth and achieved record volumes in distribution products. However, the revenue in the Metal Containers segment fell 7% year-over-year to $1.02 billion, primarily due to lower raw material costs.

Silgan completed the acquisition of Weener Packaging, expected to expand its global distribution business during the quarter. The company anticipates significant earnings growth in 2025 and beyond, driven by organic growth and synergies from the Weener acquisition.

Silgan forecasts adjusted EPS for the fourth quarter of 2024 to be in the range of $0.78 to $0.88, representing a 32% increase at the midpoint compared to the fourth quarter of 2023.