The Amcor (ASX:AMC) share price is lifting today. Here’s why

The Amcor (ASX: AMC) share price is up 3.3% today after the release of its third quarter results for FY21. Let’s take a look.
The post The Amcor (ASX:AMC) share price is lifting today. Here’s why appeared first on The Motley Fool Australia. –

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

The Amcor PLC (ASX: AMC) share price is in the green today after the dual-listed company released its third-quarter results (Q3 FY21).

At the time of writing, shares in the packaging giant are trading for $15.91 – up 3.3%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.63% higher.

Let’s take a closer look at today’s news and what it means for the Amcor share price.

Quarterly results and the Amcor share price

In its statement to the ASX, Amcor advised net income (or profit) for the quarter was US$267 million, 47.5% higher than the prior corresponding period (pcp). For the first 3 quarters of the financial year, net income was US$684 million – up 58% on the pcp.

Net sales for the quarter were US$3.2 billion – up only 2.1% on the pcp. For the nine months ending 31 March 2021, net sales totalled US$9.4 billion – up 0.88%.

Cost of sales is up 1.4% in Q3 and down 1.2% for the three quarters combined. The company attributed the gap between gross and net profit largely to a US$44 million positive change in restructuring expenses for the quarter and a US$40 million change for all 3 quarters.

Amcor had a negative cash flow for the first 3 quarters of FY21 of US $53 million. This is down 17.2% on the pcp, however. Total cash on hand for the company is US$690 million – up 28.3% on the pcp.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) are 5.6% higher on the pcp to US $1.45 billion. Adjusted earnings per share (EPS) are 51.5 cents.

Due to today’s results, Amcor will pay shareholders an interim dividend of US11.75 cents a share. This is US 0.25 cents higher than the dividend payment for the pcp.

Investors are responding well to today’s results, judging by the Amcor share price rise.

Management commentary

Commenting on the update, Amcor CEO Ron Delia said:

Amcor is maintaining momentum and executing well in the face of a dynamic operating environment. As a result, we delivered strong year-to-date performance and we are raising our full year adjusted EPS growth outlook to 14-15% in constant currency terms.

The business delivered strong adjusted EBIT growth of 9% on a year-to-date basis and organic growth has continued to strengthen as we progress through the fiscal 2021 year. Delivery of cost synergies related to the Bemis acquisition continues to progress ahead of original expectations, leaving us well positioned to exceed the original target with at least $180 million of pre-tax benefits by the end of fiscal 2022.

Amcor share price snapshot

The Amcor share price has increased 18% over the last 12 months and is up nearly 5% year-to-date. Although, in an exclusive interview with Motley Fool Australia last month, a leading fund manager explained why the company has sold its Amcor shareholdings as the market progressed post-COVID.

Amcor has a market capitalisation of $18.2 billion.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Amcor (ASX:AMC) share price is lifting today. Here’s why appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!