Amcor Shares Drop 2% Following Disappointing Q1 Results

NEW YORK - Amcor plc (NYSE:AMCR) shares fell 2.25% after the company reported its first-quarter results for fiscal year 2025 that missed analyst expectations. The global packaging company reported an adjusted earnings per share of $0.16, falling short of the consensus estimate of $0.17. Revenue was reported at $3.35 billion, missing analysts' expectations of $3.43 billion.

Despite not meeting earnings expectations, Amcor reaffirmed its prior guidance for fiscal year 2025, expecting adjusted earnings per share to be between $0.72 and $0.76. This forecast aligns with Wall Street's current consensus estimate of $0.74 per share.

CEO Peter Konieczny commented on the results, stating, "Amcor has made a solid start to fiscal year 2025; volume growth and customer demand dynamics continue to improve. Adjusted earnings per share increased by 5%, and both our Flexible Packaging and Rigid Packaging segments contributed to this solid growth through sequential volume improvement and a focus on managing costs and maintaining margin quality."

The company reported an annual volume growth of approximately 2%, representing a sequential improvement of 1 point compared to the previous quarter. However, net sales declined by 3% to $3.35 billion due to adverse pricing/product mix and foreign exchange impacts.

Amcor's adjusted EBITDA for the Flexible Packaging segment rose by 3% on a comparable constant currency basis to $329 million, while the Rigid Packaging adjusted EBITDA remained unchanged at $62 million.

The company maintained its quarterly dividend at 12.75 cents per share, compared to 12.5 cents in the same quarter last year.