Shares for Silgan Holdings saw a 7% increase on Wednesday following the announcement of their fourth-quarter results. Despite sluggish volumes, the consumer goods packaging company exceeded Wall Street estimates for earnings per share.
For the quarter ended December 31, Silgan reported net income of $64.4 million, or 60 cents a share. This is compared to $24.6 million, or 22 cents a share, in the same quarter of the previous year. Analysts had predicted earnings of 58 cents a share.
While revenue decreased from $1.46 billion to $1.34 billion compared to the previous year, it still surpassed analysts’ estimates of $1.39 billion.
Silgan also revealed plans to reduce costs by $50 million over the next two years due to an improving outlook for destocking. This trend involves companies reducing their inventories and packaging needs.
Chief Executive Adam Greenlee expressed optimism for the future, stating, “We have seen early signs of recovery in certain categories from the customer destocking activities that impacted 2023, and we expect these favorable trends to continue to improve during the first half of the year.”
Overall, Silgan Holdings’ positive earnings report has contributed to a rise in their stock price. Despite a 13% decrease in share value over the past year, the company is demonstrating resilience and potential for growth.