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A Look Back at Industrial Packaging Stocks’ Q3 Earnings: Ball (NYSE:BALL) Vs The Rest Of The Pack

By: StockStory

December 31, 2024 at 04:02 AM EST

BALL Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how industrial packaging stocks fared in Q3, starting with Ball (NYSE: BALL).

Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.

The 9 industrial packaging stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.4% since the latest earnings results.

Ball (NYSE: BALL)

Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Ball reported revenues of $3.08 billion, down 13.7% year on year. This print fell short of analysts’ expectations by 1.6%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates.

"We delivered strong third quarter results and have returned $1.25 billion to shareholders in the first nine months of 2024. Leveraging our strong financial position and leaner operating model, the company remains uniquely positioned to enable our purpose of advancing the greater use of sustainable aluminum packaging, despite the current end consumer environment in certain geographies. We continue to complement our purpose by driving innovation and sustainability on a global scale, unlocking additional manufacturing efficiencies and enabling consistent delivery of high-quality, long-term shareholder value creation," said Daniel W. Fisher, chairman and chief executive officer.

Ball delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 15.3% since reporting and currently trades at $54.41.

Read our full report on Ball here, it’s free.

Best Q3: International Paper (NYSE: IP)

Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.

International Paper reported revenues of $4.69 billion, up 1.6% year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $53.69.

Is now the time to buy International Paper? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Silgan Holdings (NYSE: SLGN)

Established in 1987, Silgan Holdings (NYSE: SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Silgan Holdings reported revenues of $1.75 billion, down 3.2% year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Silgan Holdings delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.8% since the results and currently trades at $51.73.

Read our full analysis of Silgan Holdings’s results here.

Berry Global Group (NYSE: BERY)

Founded as Imperial Plastics, Berry Global (NYSE: BERY) is a manufacturer and marketer of plastic packaging products, including containers, bottles, and prescription packaging.

Berry Global Group reported revenues of $3.17 billion, up 2.6% year on year. This print topped analysts’ expectations by 1.1%. More broadly, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations.

The stock is down 4.3% since reporting and currently trades at $64.20.

Read our full, actionable report on Berry Global Group here, it’s free.

Sealed Air (NYSE: SEE)

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Sealed Air reported revenues of $1.35 billion, down 2.7% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.

The stock is down 9.3% since reporting and currently trades at $33.63.

Read our full, actionable report on Sealed Air here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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