NASDAQ$SLGN

Silgan Holdings Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Silgan's Q4 2019 earnings decreased compared to Q4 2018, with net income at $34.8 million, or $0.31 per diluted share.

Silgan Holdings Inc. reported a decrease in net sales for the fourth quarter of 2019, with net income at $34.8 million, or $0.31 per diluted share, compared to $38.2 million, or $0.34 per diluted share, for the fourth quarter of 2018. Adjusted net income per diluted share for both Q4 2019 and Q4 2018 was $0.38. The decrease in net sales was primarily due to lower volumes in the metal container and closures businesses.

  • Net income for Q4 2019 was $34.8 million, or $0.31 per diluted share, compared to $38.2 million, or $0.34 per diluted share in Q4 2018.
  • Adjusted net income per diluted share for Q4 2019 was $0.38, the same as in Q4 2018.
  • Net sales for Q4 2019 decreased by 2.1% to $1.05 billion compared to $1.07 billion in Q4 2018.
  • The company anticipates earnings growth in 2020.

Headline financials

Total Revenue

$1.05B

Previous: $1.07B-2.1%
EPS (adj)

$0.38

Previous: $0.38+0.0%
Effective Tax Rate

27.5%

Previous: 23.1%+19.0%
Capital Expenditures

$64.1M

Previous: $56.3M+13.8%
Free Cash Flow

$446M

Previous: $437M+2.0%
Net Income

$34.8M

Previous: $38.2M-8.9%
Operating Income

$71.4M

Previous: $77.3M-7.6%
Gross Profit

$157M

Previous: $152M+2.8%
Cash & Equivalents

$204M

Previous: $72.8M+179.9%
Total Assets

$4.93B

Previous: $4.58B+7.7%

Revenue & EPS history

Silgan · Revenue · Quarterly

$1.05B

Q4 2019-2.1%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Silgan · $1.05B total across 3 segments · Q4 2019

  • Metal Containers
    $568M
  • Dispensing & Specialty Closures
    $333M
  • Custom Containers
    $147M

Forward guidance

The Company currently estimates that its adjusted net income per diluted share for the full year 2020 will be in the range of $2.28 to $2.38, an eight percent increase at the midpoint of the range over record adjusted net income per diluted share for the full year of 2019 of $2.16.

Tailwinds

  • Higher pension income
  • Continued manufacturing efficiencies across all businesses
  • Higher unit volumes in the metal container and closures businesses
  • Lower interest costs
  • Unit volumes in the metal container and closures businesses are expected to increase as compared to the prior year due in part to the unfavorable impact in the first quarter of the prior year from pre-buy activities by customers in the fourth quarter of 2018

Headwinds

  • Impact related to the renewal of certain significant customer contracts in the metal container business
  • The prior year favorable impact from the lagged pass through to customers of lower resin costs in the closures business which is not expected to recur in the first quarter of 2020
  • A higher income tax rate
  • Net sales in the metal container business are expected to decrease in 2020 as compared to 2019 primarily due to the pass through of anticipated lower raw material costs and the anticipated impact related to the renewal of certain significant customer contracts
  • Net sales in the closures business are expected to decrease in 2020 as compared to 2019 primarily as a result of the pass through of anticipated lower raw material costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.7%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+9.6%

Q4 2025

Best reaction

-13.6%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%+1.3%-3.2%
Q4 2025+9.6%+11.2%+1.5%
Q3 2025-13.6%-13.1%-11.4%
Q1 2025-1.5%+4.0%+5.0%
Q4 2024+5.2%+3.4%+2.5%
Q3 2024+1.9%+4.5%+13.3%
Q2 2024+8.1%-0.7%+7.2%
Q1 2024-2.7%-0.0%+1.3%
Q4 2023+6.3%+2.5%+0.2%
Q3 2023-3.3%-3.5%+2.1%
Q2 2023-11.2%-10.2%-7.9%
Q1 2023-9.4%-7.0%-13.0%
Q4 2022+4.7%+3.9%+6.1%
Q3 2022+4.1%+5.4%+18.2%
Q2 2022+5.8%+5.2%+10.8%
Q1 2022+2.9%+2.0%+2.3%
Q4 2021+2.0%+7.7%-0.3%
Q3 2021+3.4%+2.4%+8.7%
Q2 2021+2.0%+1.0%+7.6%
Q1 2021-1.8%-1.3%-2.3%
Q4 2020-2.2%-0.8%+3.9%
Q3 2020-7.7%-8.8%-11.1%
Q2 2020+7.6%+7.9%+6.3%
Q1 2020+3.9%+7.5%-0.2%
Q4 2019-1.7%-1.9%-6.7%
Q3 2019-1.8%+0.1%-1.3%
Q2 2019+0.3%+1.9%-2.3%
Q1 2019-2.8%-1.7%-1.9%
Q4 2018+3.6%+6.2%+7.6%
Q3 2018-11.3%-11.2%-5.1%
Q2 2018+0.1%+1.7%+1.7%
Q1 2018+6.1%+3.4%+2.8%
Q4 2017+3.2%+1.7%-3.3%
Q3 2017+3.3%+1.6%-0.3%
Q2 2017-3.3%-5.0%-7.3%
Q1 2017+2.8%+1.4%+4.5%
Q4 2016+1.8%+1.9%+0.9%
Q3 2016+2.0%+0.6%-0.8%
Q2 2016-5.0%-5.3%-9.5%
Q1 2016-3.6%
Q4 2015+1.4%
Q3 2015-6.8%
Q2 2015-0.5%
Q1 2015-5.4%
Q4 2014+5.3%
Q3 2014-2.9%
Q2 2014-0.4%
Q1 2014-1.8%
Q4 2013+0.8%
Q3 2013-8.3%
Q2 2013-3.2%
Q1 2013-1.6%
Q4 2012+1.4%
Q3 2012+1.0%
Q2 2012-5.5%
Q1 2012-1.0%
Q4 2011+0.2%
Q3 2011-2.0%
Q2 2011+5.0%
Q1 2010-0.3%
Q4 2010-0.3%
Q1 2011+1.5%
Q4 2008-1.5%
Q3 2010+0.5%
Q3 2009+0.5%
Q4 2009+1.2%
Q2 2009+1.2%
Q2 2010+1.2%

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