Amcor (NYSE:AMCR) Posts Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Amcor (NYSE:AMCR) released its quarterly earnings data on Wednesday. The company reported $0.95 EPS for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.01), FiscalAI reports. The firm had revenue of $6.13 billion during the quarter, compared to the consensus estimate of $5.75 billion. Amcor had a net margin of 4.55% and a return on equity of 15.86%. During the same quarter in the prior year, the company earned $0.11 EPS.

Here are the key takeaways from Amcor’s conference call:

• Organic volumes grew 1%, the fourth consecutive quarter of sequential improvement, with focus categories up 3%; management said October volumes were in line with September. Growth was broad across regions, with pet food, food service and China among the areas highlighted.
• Amcor captured $60 million in quarterly synergies and reported $170 million in annual sales from new growth-synergy awards. Management reaffirmed its $650 million three-year synergy target, expects to achieve most of it by the end of 2027, and is targeting double-digit adjusted EPS growth in 2027.
• The company lowered its transition-period adjusted EPS outlook to $1.70–$1.80 per share from $1.80–$1.90, citing the timing of higher energy and distribution costs. Management estimated gross costs of more than $100 million, with nearly half offset so far, and expects pricing and productivity actions to address the pressure by year-end.
• Free cash outflow was $820 million, and leverage rose to 3.76 times; management attributed about $500 million of working capital pressure to the Middle East conflict. It expects cash flow to be neutral for the transition period and aims to recover the working capital by the end of 2027, targeting leverage of about 3 times.
• The board approved a modest quarterly dividend increase to $0.66 per share. Management described the increase as reflecting confidence in business momentum and disciplined capital allocation.

Amcor Stock Down 1.9%

Shares of NYSE:AMCR traded down $0.89 during trading on Friday, hitting $44.95. 2,477,783 shares of the company were exchanged, compared to its average volume of 4,528,439. The stock has a market cap of $20.78 billion, a price-to-earnings ratio of 19.39, a P/E/G ratio of 3.03 and a beta of 0.56. Amcor has a fifty-two week low of $36.25 and a fifty-two week high of $50.94. The firm has a fifty day moving average price of $44.03 and a two-hundred day moving average price of $43.15. The company has a current ratio of 1.25, a quick ratio of 0.76 and a debt-to-equity ratio of 1.17.

Amcor Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Shareholders of record on Wednesday, November 25th will be paid a $0.66 dividend. This is a positive change from Amcor’s previous quarterly dividend of $0.65. This represents a $2.64 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date is Wednesday, November 25th. Amcor’s dividend payout ratio is 110.17%.

Key Amcor News

Here are the key news stories impacting Amcor this week:

• Positive Sentiment: Amcor raised its quarterly dividend 1.5%, to $0.66 per share, equivalent to $2.64 annually and a reported yield of about 5.7%. Dividend announcement
• Positive Sentiment: Truist raised its price target to $53 from $51 and maintained a Buy rating, signaling confidence in the shares despite recent results. Truist price-target update
• Positive Sentiment: Revenue of $6.13 billion exceeded analysts’ $5.75 billion estimate, with higher volumes contributing to growth. Quarterly results
• Neutral Sentiment: Amcor’s DecoFusion tube received a sustainability technology award, while a new lightweight closure is presented as improving recyclability. These product developments may support its longer-term positioning, though the reports do not quantify a near-term financial impact. DecoFusion award
• Negative Sentiment: Adjusted EPS was $0.95, a penny below consensus, and Amcor cut its transition-period EPS outlook amid higher costs. The reduced guidance is the clearest near-term negative for the stock, despite revenue growth. Earnings and outlook report
• Negative Sentiment: Deutsche Bank downgraded Amcor from Buy to Hold, adding to investor caution around the outlook. Analyst downgrade

Analyst Ratings Changes

AMCR has been the topic of a number of research analyst reports. BMO Capital Markets began coverage on Amcor in a research report on Thursday, July 16th. They set a “market perform” rating and a $47.00 price target on the stock. Citigroup restated a “buy” rating and set a $52.00 target price (up from $47.00) on shares of Amcor in a report on Friday, August 14th. Bank of America boosted their price objective on shares of Amcor from $48.00 to $51.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. UBS Group restated a “buy” rating on shares of Amcor in a report on Thursday. Finally, JPMorgan Chase & Co. downgraded Amcor from an “overweight” rating to a “neutral” rating and increased their price objective for the stock from $44.00 to $47.00 in a report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Amcor currently has a consensus rating of “Moderate Buy” and an average target price of $49.54.

About Amcor

Amcor plc (NYSE: AMCR) is a global packaging company that develops and produces packaging solutions for food, beverage, pharmaceutical, medical, personal care, household, and other consumer and industrial products. Its offerings include flexible packaging, rigid containers, closures, bottles, specialty cartons, and related packaging systems designed to protect products, support supply chains, and improve convenience and sustainability.

The company serves customers across North America, Latin America, Europe, Asia-Pacific, and other international markets.