Ann: Form 8-K - FY24 Results, page-4

Amcor (AMCR) Scales 52-Week High: What's Driving the Stock?


Zacks Equity Research
Fri 23 August 2024 at 2:37 am AEST·3-min read



Shares of Amcor AMCR have scaled a new 52-week high of $10.96 on Aug 21, before closing the session a tad lower at $10.93.
AMCR currently has a market capitalization of $15.8 billion and a Zacks Rank #3 (Hold).
So far this year, Amcor’s shares have gained 13.4%, outperforming the industry's 11.6% growth and the Industrial Products sector’s 6.7% rise.


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What’s Driving the Amcor Stock?

Recovery in Volumes in Q4: The company recently reported upbeat fourth-quarter and fiscal 2024 results on Aug 15, 2024. Adjusted earnings per share (EPS) were 21 cents in the quarter, up 9.3% from the prior-year quarter. The improvement was attributed to year-over-year volume growth and lower costs. Also, the company returned to volume growth after seven straight quarters of declines, mainly led by the Flexibles segment.

Amcor’s revenues, however, dipped 3.8% year over year to $3.54 billion. This was due to the pass-through of lower raw material costs and unfavorable foreign currency translation. Price/mix was down 3% year over year while volumes returned to growth at 1%.
Upbeat Guidance for FY25: Amcor reported an adjusted EPS of 70 cents in fiscal 2024, which was within the company’s guided range of 68.5-71 cents. Amcor projects fiscal 2025 EPS to be between 72 cents and 76 cents. This indicates year-over-year growth in the range of 3-9%.
Amcor’s adjusted free cash flow in fiscal 2024 was $952 million, which marked a 12% improvement from the prior fiscal year. The company expects adjusted free cash flow in fiscal 2025 to be in the range of $0.9 - $1 billion.
Dividend Hike: The company’s board of directors raised its dividend by 2% to 12.50 cents per share. This takes its dividend yield to 4.57%, higher than the industry’s 2.70%.
Decarbonization Roadmap: Amcor also divulged its Decarbonization Roadmap to reduce greenhouse gas emissions. It aims to bring innovation to product designs to lower the carbon footprint. It also intends to increase the use of recycled materials in its packaging solutions and transition to renewable sources to power its operations.
Amcor also will ensure that suppliers meet sustainability standards and align with its decarbonization targets. The company will also focus on enhancing operational efficiency through actions such as improving water and waste management, boosting energy efficiency and upgrading equipment.