Silgan Holdings Earns 60 Cents per Share

After the closing bell, Silgan Holdings (SLGN) reported fiscal Q4 net income of 60 cents per share. That’s an impressive number. Wall Street had been expecting 53 cents per share.

For the full year, Silgan made $3.06 per share. That’s up 42% over last year. It’s also well above Silgan’s earlier estimate of $2.92 to $2.97 per share (which itself was an increase over the prior estimate).

Cash flow from operations rose 19% to $602.5 million. Silgan had free cash flow of $383.5 million. Q4 net sales rose 17.0% to $1.23 billion.

Silgan has a bold forecast for this year.

“While 2020 presented us all with so many challenges, it also provided the Company with the opportunity to showcase the essential nature of our products, the strength and commitment of our team and the power of our performance-based culture, as the Company delivered record adjusted net income per diluted share of $3.06, a 41.7 percent increase over prior year adjusted earnings, and record free cash flow of $383.5 million,” said Tony Allott, Chairman and CEO. “Strong demand for our shelf-stable metal food packaging and our health and hygiene products sustained throughout the year, leading us to expect continued strong volumes in 2021. Therefore, we estimate adjusted net income per diluted share for 2021 for the Company to be in a range of $3.30 to $3.45, a 10.3 percent improvement over the record prior year period at the midpoint of this range. We also expect to continue to generate significant free cash flow of approximately $380 million in 2021, making acquisitions or other value creating uses of our cash an additional near-term opportunity,” concluded Mr. Allott.

So Silgan sees earnings this year between $3.30 and $3.45 per share.

Posted by on January 26th, 2021 at 6:11 pm


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