Why Crown Holdings Stock Was Climbing Today

Shares of Crown Holdings (NYSE: CCK), the maker of aluminum cans and other packaging supplies, reported better-than-expected results in its third-quarter earnings report, sporting solid growth on the top and bottom lines. It also raised its guidance for the full year.

As of 11:48 a.m. ET, the stock was up 3.7% on the news.

Crown Holdings raises the bar

In a fluid environment where tariffs have roiled global manufacturers like Crown Holdings, the company is still managing to deliver growth. In the third quarter, revenue rose 4.2% to $3.2 billion, topping estimates at $3.14 billion.

The company experienced strong growth in Europe, with volume growth up 12% in the European beverage segment, which drove a 27% increase in segment income. Other regions were mixed.

Overall, segment income, which adjusts operating income for one-time charges and intangibles amortization, was up 4% to $490 million, and adjusted earnings per share (EPS) increased 13% to $2.24, which beat the consensus at $1.99.

Crown lifts its guidance

Management said it was raising its full-year forecast based on its performance through the first three quarters of the year. The company now expects adjusted earnings per share of $7.70 to $7.80, up from a previous forecast of $7.10 to $7.50. For the fourth quarter, it sees adjusted EPS of $1.65 to $1.75, which compares to the consensus at $1.58.

Following the report, Jefferies reiterated a buy rating on the stock, calling it "undervalued."

At a price-to-earnings ratio of less than 13, Crown looks well priced for a category leader that's growing in a challenging environment.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.