Yahoo Finance Amcor (AMCR) Grows Presence in China With MDK Acquisition
Amcor plc AMCR announced that it entered an agreement to acquire the Shanghai-based provider of medical device packaging, MDK. The acquisition will help solidify Amcor’s already strong healthcare platform in the Asia Pacific region.
The companies expect the deal to close in the March-end quarter of 2023. The transaction is subject to customary regulatory approvals.
MDK’s coating capabilities, medical paper-based packaging offerings and customer base bode well with Amcor's existing portfolio. The acquisition will also strengthen Amcor's presence in the China medical device packaging market.
In a bid to expand its footprint in the Asia Pacific region, Amcor previously unveiled a cutting-edge facility for healthcare packaging in Singapore in December 2021 and a world-class Asia Pacific Innovation Center in Jiangyin, China, in August 2022. Amcor's Asia Pacific medical packaging segment currently consists of four manufacturing facilities serving the markets of China, India, Japan and Southeast Asia.
Backed by its strong balance sheet and an annual free cash flow of above $1 billion, Amcor continues to invest in growth and expand capacity in higher growth, higher value-added and more packaging-intensive segments.
In the first quarter of fiscal 2023, AMCR reported adjusted earnings per share of 18 cents. The bottom line was in line with the year-ago quarter. However, the same missed the Zacks Consensus Estimate of 19 cents. Total revenues were $3.7 billion in the reported quarter, beating the Zacks Consensus Estimate of $3.5 billion. This compared favorably with the prior-year quarter’s $3.4 billion.
The company expects adjusted comparable constant-currency EPS growth of 3-8% for fiscal 2023. Amcor revised the adjusted EPS expectation to 77-81 cents from the previously stated 80-84 cents.
Price Performance
In the past year, Amcor’s shares have lost 2.1% compared with the industry’s fall of 2.3%.
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Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. KNBE, Deere & Company DE, and O-I Glass, Inc. OI. KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, and DE and OI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 15.6% in a year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 5.2% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 16.6% in the last year.
O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.25 per share. This indicates a 22.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 30.9% in the last year.
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