Here's Why Should You Hold On To Silgan (SLGN) At The Moment
Zacks Investment Research | Feb 18, 2019 08:37PM ET
Silgan Holdings Inc. (NASDAQ:SLGN) is poised to gain from the Dispensing Systems acquisition, increased capital expenditure and lower tax rate despite raw material cost inflation.
The company has outpaced the Zacks Consensus Estimate in two of the trailing four quarters. This resulted in average positive earnings surprise of 5.23%. The company has an estimated long-term earnings growth rate of 7.70%.
Below, we briefly analyze the company's potential growth drivers and possible headwinds.
Factors Favoring Silgan
Upbeat Q4 Outlook: Silgan expects to deliver improved operating results across all businesses in 2019. The company expects adjusted earnings of $2.10-$2.20 per share for 2019, reflecting a 9.6% increase from the prior year at the mid-point. Silgan provided adjusted earnings per share guidance at 40 to 45 cents for the first quarter of 2019. Compared with earnings of 42 cents per share in the first quarter of 2018, the mid-point of the guidance reflects a year-over year improvement of 1%.
Positive Growth Projections: The Zacks Consensus Estimate for earnings is currently pegged at $2.17 for fiscal 2019, reflecting year-over-year growth of 4.33%. For fiscal 2020, the Zacks Consensus Estimate for earnings is pegged at $2.32, highlighting year-over-year growth of 7.04%.
Price Performance: The stock has gained around 13.9% over the past three months, outperforming theOriginal post
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