Crown Holdings Inc (NYSE:CCK) shares declined 1.7% in premarket trading on Tuesday after the packaging manufacturer issued fourth-quarter earnings guidance below analysts’ expectations, despite reporting third-quarter revenue and adjusted earnings per share above market forecasts.
The company reported third-quarter adjusted earnings of $2.39 per share, exceeding the analyst consensus estimate of $2.26. Revenue increased 16% year over year to $3.71 billion, compared with expectations of $3.45 billion.
The revenue increase was partly supported by a 6% rise in global beverage can volumes during the quarter.
For the fourth quarter, Crown forecast adjusted earnings per share of $1.63 to $1.73. The midpoint of $1.68 was below the Wall Street consensus estimate of $1.79.
The guidance followed the company’s third-quarter results, released after the market closed on Monday.
Wells Fargo also revised its price target for Crown Holdings on Monday, reducing it to $126 from $127 while maintaining its “equal weight” rating on the stock.
Crown shares had risen in the weeks preceding the earnings announcement, before declining in premarket trading following the release of its quarterly results and forward guidance.
The broader US equity market showed mixed movements, with the S&P 500 trading marginally higher, the Dow Jones Industrial Average posting a modest gain and the Nasdaq moving slightly lower.
Elsewhere in the sector, Steel Dynamics reported third-quarter results below analyst estimates, with its shares declining in after-hours trading. The company’s results came amid elevated input costs affecting the industry.
Crown’s third-quarter revenue and adjusted earnings exceeded consensus forecasts, while its fourth-quarter earnings outlook remained below analysts’ expectations. The company’s shares were down 1.7% ahead of Tuesday’s regular trading session.
Crown Holdings stock price
