Berry Global Group (NYSE: BERY) reported Q3 EPS of $1.52, $0.37 better than the analyst estimate of $1.15. Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.98 billion.

Outlook:

While certain markets have been impacted by COVID-19 in a variety of ways, like restrictions on daily activities and changes in consumer demand, we are fortunate to have such a diversified portfolio with strong, stable end markets. As such, we are pleased to report that we are increasing our fiscal year 2020 free cash flow to $830 million, which includes $1.45 billion of cash flow from operations partially offset by capital expenditures of $620 million. Cash taxes are expected to be $170 million, and cash interest costs are projected at $430 million. Additionally, we expect working capital, restructuring and other costs to be $50 million.

We still believe approximately 65 percent of our portfolio is advantaged to neutral with about 35 percent negatively impacted related to COVID-19. Specifically, on volumes, we anticipate our Health, Hygiene & Specialties segment to produce low double-digit growth. Our Consumer Packaging - North American business, we believe, will experience low-single digit volume growth as headwinds in the foodservice space moderate along with continued solid demand in hygiene and grocery markets. We believe both our Consumer Packaging - International and Engineered Material businesses will experience low-single digit and mid-single digit volume declines in our fiscal fourth quarter, respectively, related to the weakness from the impact of COVID-19. As COVID-19 headwinds subside we would expect the businesses to ultimately achieve low-single digit volume growth.

We believe the acquisition of RPC is truly a transformational and complementary opportunity for our Company. We intend to realize approximately $150 million of annual cost synergies of which an estimated $85 million is expected to be realized in fiscal 2020.

For earnings history and earnings-related data on Berry Global Group (BERY) click here.