The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Silgan Holdings beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Silgan Holdings reported revenue of $835.9 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $816.2 million. Sales were 17% higher than the prior-year quarter's $711.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.56. The nine earnings estimates compiled by S&P Capital IQ averaged $0.54 per share on the same basis. GAAP EPS of $0.53 for Q4 were 141% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 14.0%, 20 basis points better than the prior-year quarter. Operating margin was 8.7%, 70 basis points better than the prior-year quarter. Net margin was 4.4%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $782.9 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $3.63 billion. The average EPS estimate is $2.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 87 members out of 88 rating the stock outperform, and one member rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Silgan Holdings a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silgan Holdings is outperform, with an average price target of $42.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.