What Happened?
Shares of metal packaging products manufacturer Crown Holdings (NYSE: CCK) jumped 3.6% in the morning session after the company reported second-quarter earnings that surpassed analyst expectations and raised its full-year guidance.
The company announced adjusted earnings per share of $2.15, a 19% increase from the prior year and well ahead of the consensus estimate of $1.87. Revenue for the quarter also topped forecasts, coming in at $3.15 billion, driven by strong performance in its beverage and North American tinplate businesses. Buoyed by the strong first-half results, Crown lifted its full-year adjusted earnings per share forecast to a range of $7.10 to $7.50, up from the previous estimate of $6.70 to $7.10. The company also increased its projection for adjusted free cash flow, which is the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. The positive report prompted a Buy rating reiteration from analysts at both Citi and Morgan Stanley.
After the initial pop the shares cooled down to $105.56, up 0.7% from previous close.
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What Is The Market Telling Us
Crown Holdings’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 10% on the news that the company reported strong second-quarter earnings. EPS came in ahead of expectations, though revenue missed by a narrow margin. The topline benefited from "higher global beverage can shipments offset primarily by the pass through of $94 million in lower material costs and unfavorable foreign currency of $13 million." Adding to the positive aspect, free cash flow came in positive, and gross margin ticked up slightly. Overall, it was a strong quarter for the company, with ample reasons for investors to stay positive.
Crown Holdings is up 30% since the beginning of the year, and at $105.56 per share, it is trading close to its 52-week high of $108.12 from July 2025. Investors who bought $1,000 worth of Crown Holdings’s shares 5 years ago would now be looking at an investment worth $1,492.
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