Crown Holdings Cuts FY22 Earnings Forecast Despite Q2 Beat

Crown Holdings Inc CCK reported second-quarter FY22 sales growth of 22.9% year-on-year, to $3.51 billion, beating the consensus of $3.21 billion.
The company attributed the sales growth to increased beverage can unit volumes and the pass-through of higher material costs.
Segment Revenue: Americas Beverage rose 25.7%, European Beverage climbed 25.1%, Asia Pacific grew 30.9%, and Transit Packaging improved 8.5%.
Selling, general and administrative expenses fell 4.8% Y/Y to $140 million.
The operating margin was 13.3%, and operating income for the quarter rose 21% to $466 million.
The company held $526 million in cash and equivalents as of June 30, 2022.
Inventories at the end of June rose 49% Y/Y.
Adjusted EPS of $2.10 beat the analyst consensus of $2.03.
Outlook: Crown sees Q3 adjusted EPS of $1.75 - $1.85, against the Street view of $2.08.
The company reduced its FY22 adjusted EPS outlook to $7.65 - $7.85 (prior view $8.00 - $8.20) versus the consensus of $8.12.
Price Action: CCK shares closed higher by 1.82% at $93.83 on Wednesday.