What happened

Week to date, shares of Crown Holdings (CCK -0.39%) were down 31% as of 12:12 p.m. ET on Friday, according to data provided by S&P Global Market Intelligence. The sharp decline comes after the company reported disappointing third-quarter earnings results earlier this week.   

Earnings per share missed estimates badly, coming in at $1.06 compared to the consensus estimate calling for $1.79. The earnings miss comes on weaker-than-expected revenue of $3.26 billion, lower than expectations of $3.32 billion. The post-earnings drop brings the stock down 37% year to date. 

So what

Investors can blame negative foreign currency fluctuation for the revenue miss. The company said foreign currency represented a $127 million headwind in the quarter. 

Moreover, shipment growth was below management's expectations. Crown's beverage customers are shifting orders in response to lower consumer demand. Higher inflation, interest rates, the war in Ukraine, and the rising U.S. dollar are all headwinds for growth.

Now what

The economy is outside of Crown's control, so management is focusing on positioning the company for long-term success. This involves opening two new plants in Virginia and Nevada in the coming months to expand capacity. But management is also tightening the purse strings by lowering capital spending and reducing headcount to keep costs under control.

Investors should keep their eye on Crown stock in the bear market. The company is a leading supplier of aluminum cans, so as beverage volumes grow over the long term, Crown can deliver good returns, as it has historically. The sell-off brings the stock's price-to-earnings ratio down to a cheap 10.4 based on this year's earnings estimate.