Crown Holdings tumbles after inflationary pressures impact Q1 results, guidance

• Crown Holdings (NYSE:CCK) is down 7% in early Tuesday trading after reporting first quarter's results impacted through inflationary pressures and soft earnings guidance update.
• Revenue of $3.16B (+23.4% Y/Y) beats by $220M, reflecting increased beverage sales unit volumes.
• It includes: Americas Beverages sales of $1.23B, European Beverages, $510M; Asia Pacific, $413M; and Transit Packaging, $657M.
• CEO Timothy J. Donahue said: "Strong performances in the North American Tinplate and can-making equipment businesses, combined with robust beverage can shipments in Vietnam, offset notable inflationary pressures in Europe and North America and transient market softness in Brazil."
• Unit Volumes: North America's food can business benefitted from 16% unit volume growth in self-made two-piece cans as a result of new capacity installed to plants in Iowa and Pennsylvania in 2021. Additional two-piece food can capacity is expected to be commercialized later this year on completion of third line's constriction to its Owatonna, Minnesota plant.
• Income from operations was $344M compared to $327M in 1Q21.
• GAAP EPS was $1.74; Non-GAAP EPS of $2.01 beats by $0.19.
• Crown Holdings told it has repurchased $400M shares year to date through April 25, 2022 under its $3B buyback program.
• Transit Packaging Business Sale: The company has agreed to sell its Transit Packaging segment's Kiwiplan business for $182 million in gross proceeds. The segment generated $39 million and $10 million in revenue and EBITDA, respectively in FY21.
• Q2 Guidance: Adjusted EPS is expected to range between $2-$2.10 vs. consensus of $2.06.
• For full year, Non-GAAP EPS is projected to range between $8-$8.20 vs. consensus of $8.14.
• "I'm bullish on the aluminum beverage can market in general as the demand will continue to outpace the supply for several more years," wrote Seeking Alpha's author The Investment Doctor at Buy rating on Crown Holdings.