What Happened?
Shares of rigid packaging solutions manufacturer Silgan Holdings (NYSE: SLGN) fell 16.5% in the afternoon session after the company reported second-quarter results that missed profit expectations and lowered its full-year earnings guidance. The company posted second-quarter adjusted earnings of $1.01 per share, which fell short of the $1.03 per share that analysts had anticipated. While revenue of $1.54 billion slightly topped forecasts, other key metrics disappointed investors. Notably, Adjusted EBITDA, a measure of profitability, came in at $239 million, missing estimates by over 8%. More significantly, Silgan revised its full-year adjusted earnings per share forecast downward to a range of $3.85 to $4.05, from a previous range of $4.00 to $4.20. This reduction in outlook signaled potential future weakness, prompting a significant sell-off in the shares.
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What Is The Market Telling Us
Silgan Holdings’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Silgan Holdings and indicate this news significantly impacted the market’s perception of the business.
Silgan Holdings is down 8.4% since the beginning of the year, and at $46.74 per share, it is trading 18.8% below its 52-week high of $57.53 from November 2024. Investors who bought $1,000 worth of Silgan Holdings’s shares 5 years ago would now be looking at an investment worth $1,219.
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