Silgan Holdings (NASDAQ: SLGN) reported Q2 EPS of $0.52, in-line with the analyst estimate of $0.52. Revenue for the quarter came in at $1.06 billion versus the consensus estimate of $1.07 billion.

Highlights

• Record net income per share of $0.50
• Record adjusted net income per share increased 49 percent to $0.52
• Record second quarter segment income in the closures business
• Continued improvement in the plastic container business
• Completed favorable amendment to senior secured credit facility

“The second quarter of 2018 demonstrated the benefits of Silgan’s cash deployment model, as the Company delivered record adjusted net income per diluted share of $0.52, an increase of 49 percent over the prior year period,” said Tony Allott, President and CEO. “The Dispensing Systems operations drove record second quarter segment income in our closures business, notwithstanding softer volumes for single-serve beverages. Our plastic container business continued to demonstrate its enhanced operational capability and delivered volume growth in a seasonally strong quarter for this business. Volumes in our metal container business were down in the quarter more than anticipated due to specific customer activities and delays in the fruit and vegetable pack in the geographies that we serve primarily as a result of unfavorable weather worldwide,” continued Mr. Allott. “While some of these factors will impact full year volumes, others will shift volumes to later quarters as is typical in this business. Based on our performance to date and our outlook for the remainder of the year, we are confirming our full year 2018 earnings estimate of adjusted net income per diluted share in the range of $2.03 to $2.13, an increase of 26 percent at the midpoint of the range as compared to 2017,” concluded Mr. Allott.

Outlook for 2018

The Company confirmed its estimate of adjusted net income per diluted share for the full year of 2018 in the range of $2.03 to $2.13, which excludes rationalization charges and loss on early extinguishment of debt. At the midpoint of this range, this estimate reflects a 26 percent increase over adjusted net income per diluted share for the full year of 2017 of $1.65.

The Company is providing an estimate of adjusted net income per diluted share for the third quarter of 2018, which excludes rationalization charges, in the range of $0.74 to $0.78. At the midpoint of this range, this estimate reflects a 15 percent increase over adjusted net income per diluted share of $0.66 in the third quarter of 2017. Given the uncertainties around timing of the fruit and vegetable harvest in the U.S. and Europe, the results of the back half of the year could shift between the third and fourth quarters.

GUIDANCE:

Silgan Holdings sees FY2018 EPS of $2.03-$2.13, versus the consensus of $2.11.

For earnings history and earnings-related data on Silgan Holdings (SLGN) click here.