Silgan Q3 sales miss estimates on soup market weakness

Overview

• U.S. rigid packaging supplier's Q3 sales rose 2% yr/yr but missed analyst expectations

• Adjusted EPS for Q3 rose 7% yr/yr to a record high

• Company announced acquisition of Trivium to accelerate portfolio transformation

Outlook

• Silgan raises 2026 adjusted EPS guidance to $3.83-$3.93 from $3.73-$3.93

• Company maintains 2026 free cash flow estimate at about $450 mln

• Silgan expects Q4 2026 adjusted EPS of $0.76-$0.86

Result Drivers

• PHARMA AND FRAGRANCE DEMAND - Co said double digit growth in pharma dispensing products and mid-single digit growth in fragrance dispensing products boosted segment performance

• RAW MATERIAL COST PASS THROUGH - Co attributed sales growth to contractual pass through of higher raw material costs

• SOUP MARKET WEAKNESS - Co said lower volumes for soup markets reduced metal container sales, offset by higher fruit, vegetable and pet food volumes

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for Silgan Holdings Inc. is $50.50, about 33.1% above its October 28 closing price of $37.93

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 27 - O-I Glass Q3 sales miss analyst expectations on lower volumes

• Oct 27 - Engineered components maker Crane's Q3 sales beat, partly on acquisitions

• Oct 28 - Smurfit Westrock Q3 net income falls on cost inflation

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)