Why Did Crown Stock Drop This Week?

Crown Stock

Crown stock (NYSE:CCK) were down 31% year to date as of 12:12 p.m. ET on Friday, according to data from S&P Global Market Intelligence. The sharp drop follows the company’s disappointing third-quarter earnings results earlier this week.

Earnings per share fell short of expectations, coming in at $1.06 versus the consensus estimate of $1.79. The earnings miss is due to lower-than-expected revenue of $3.26 billion, which fell short of expectations of $3.32 billion. The stock is down 37% year to date as a result of the post-earnings drop.

So, What’s the Deal?

Investors can blame the revenue shortfall on negative currency fluctuations. According to the company, foreign currency was a $127 million headwind in the quarter.

Furthermore, shipment growth fell short of management’s expectations. Crown’s beverage customers are changing their orders as a result of lower consumer demand. Higher inflation, interest rates, the Ukraine conflict, and a rising US dollar all drag on the growth of Crown Holdings stock (NYSE:CCK).

Crown Stock: What Now?

Because the economy is beyond Crown’s control, management is concentrating on positioning the company for long-term success. Two new plants will be built in Virginia and Nevada in the coming months to increase capacity. Management is also tightening the purse strings to keep costs under control by reducing capital spending and headcount.

During a bear market, investors should keep an eye on Crown Holdings stock (NYSE:CCK). Crown is a leading supplier of aluminum cans, so as beverage volumes increase over time, the company can deliver good returns, as it has in the past. Based on this year’s earnings estimate, the stock’s price-to-earnings ratio has dropped to a reasonable 10.4.

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About the author: Okoro Chinedu is a freelance writer specializing in health and finance, with a keen interest in cryptocurrency and blockchain technology. He has worked in content creation and digital journalism. Since 2019, he has written on various online platforms, and his work has been recognized by several important media sources and specialists in finance and crypto. In addition to writing, Chinedu enjoys reading, playing football, posing as a medical student, and traveling.