Amcor to Report Q3 Earnings: Here's What to Expect for the Stock

Amcor Plc AMCR is scheduled to report third-quarter fiscal 2025 results on April 30, after the closing bell.

The Zacks Consensus Estimate for AMCR’s fiscal third-quarter revenues is pegged at $3.51 billion, indicating 2.9% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at 18 cents per share. The consensus estimate indicates in-line results with the year-ago quarter. The estimate has moved down 5.3% in the past 60 days.

AMCR’s Earnings Surprise History

Amcor’s earnings beat the Zacks Consensus Estimates in one of the trailing four quarters and matched in the remaining three. AMCR delivered an average surprise of 1.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

What the Zacks Model Unveils for Amcor

Our proven model does not conclusively predict an earnings beat for Amcor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for AMCR is -2.17%.

Zacks Rank: Amcor currently carries a Zacks Rank #4 (Sell).

Factors Likely to Have Shaped AMCR’s Q3 Performance

Amcor’s total volume growth had been in the negative territory for seven straight quarters till the third quarter of fiscal 2024 as inflationary pressures weighed on consumer spending. Volumes picked up with 1% growth in the fourth quarter of fiscal 2024 , 2% in the first quarter of fiscal 2025 and 2% in the second quarter of fiscal 2025. 

We expect 4.7% growth in volumes in the fiscal second quarter. This is likely to have been driven by an improved performance in the Flexibles segment.  Overall price/mix benefits are expected to be a negative 1.9% for the quarter.

Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials because of market dynamics and higher rates of inflation impacting other costs. The impacts of this are expected to be reflected in the company’s fiscal third-quarter earnings results.

Our Q3 Projections for Amcor’s Segments

The Flexible segment returned to volume growth of 3%  in the fourth quarter of fiscal 2024 after seven straight quarters of declines. The segment reported volume growth of 3% in the first quarter of fiscal 2025 and 3% in the second fiscal quarter. Backed by solid customer demand across all regions and many product categories, we project volume growth of 4.9% for the segment. The price/mix is expected to be an unfavorable 2.3%. Our sales projection for the Flexibles segment is pegged at $2.68 billion, indicating 3% year-over-year growth.

Our model estimates a 4.1% rise in volumes for the Rigid Packaging segment and a price/mix decrease of 0.7%. The sales projection for the segment is $0.85 billion, indicating 4% year-over-year growth.

Major Recent Development for Amcor

Amcor and Berry Global Group, Inc. BERY announced that the European Commission has granted approval for the Amcor and Berry Global merger. This marks the clearance of the final regulatory requirement. The Amcor and Berry Global merger is set to close on April 30, 2025, subject to the satisfaction or waiver of certain other closing conditions.

AMCR’s Share Price Performance

Over the past year, shares of Amcor have gained 10.6% against the industry’s 2.3% decline.

Stocks to Consider

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Tenaris S.A. TS is expected to release its first-quarter 2025 results on April 30. It has an Earnings ESP of +17.98% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Tenaris’ earnings is pegged at 89 cents per share, which indicates a year-over-year decline of 29.9%. TS has a trailing four-quarter average surprise of 10.9%.

Illinois Tool Works Inc. ITW, anticipated to release its first-quarter 2025 on April 30, has an Earnings ESP of +0.15% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Illinois Tool Works’ first-quarter 2025 earnings is pegged at $2.34 per share, suggesting a year-over-year decline of 4.1%. ITW has a trailing four-quarter average surprise of 3.6%.

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This article originally published on Zacks Investment Research (zacks.com).

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