A month has gone by since the last earnings report for Amcor (AMCR). Shares have lost about 5.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amcor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Amcor's Q3 Earnings Meet Estimates, Sales Beat on Berry Acquisition
Amcor delivered third-quarter fiscal 2026 adjusted earnings of 96 cents per share, up 6% year over year and in line with the Zacks Consensus Estimate. Reported net sales climbed 77% from the year-ago quarter to $5.91 billion and beat the consensus mark of $5.69 billion.
Results reflected the first full year of the Berry combination and continued integration progress, including $77 million of acquisition synergies in the quarter, along with cost and productivity actions that supported profitability.
Amcor's Margins Improve Despite Integration Costs
Profitability advanced meaningfully in the quarter as adjusted EBITDA rose to $892 million from $477 million in the prior-year quarter, translating to a 15.1% margin, up from 14.3% a year ago. Adjusted EBIT increased to $687 million from the prior-year quarter’s $384 million, with the adjusted EBIT margin increasing to 11.6%, highlighting better mix and execution across the combined platform.
The top line was primarily shaped by acquisition-driven expansion. On a constant-currency basis, net sales grew 70% year over year, including $2.4 billion of acquired sales net of divestments, while raw material pass-through had no material impact on consolidated revenues.
Underlying demand remained pressured. Amcor estimated that volumes were 1.5% lower than estimated combined volumes for the legacy Amcor and legacy Berry businesses in the prior-year quarter (excluding non-core and divested businesses). Price/mix was described as having no material impact on net sales.
Flexibles Segment Gains From Scale Benefits
Global Flexible Packaging Solutions posted net sales of $3.25 billion, up 35% on a reported basis and 29% in constant currency. Adjusted EBIT increased to $452 million from the prior-year quarter’s $343 million, lifting segment profitability.
The company cited higher volumes in pet food and protein, offset by softer demand in healthcare and other nutrition. Regional trends were also mixed, with volumes lower across North America and Europe and higher across Asia. The segment’s profit improvement reflected integration benefits, productivity and cost performance, partly offset by the volume backdrop.
Rigids Segment Absorbs Weather Disruptions
Global Rigid Packaging Solutions generated net sales of $2.66 billion, up 187% year over year on a reported basis and 174% in constant currency, again reflecting the enlarged portfolio following the Berry deal. Adjusted EBIT rose to $276 million, marking a significant increase from the prior-year quarter’s $70 million.
However, the company highlighted an estimated $25-million impact of U.S. storms within the segment, which tempered the results even as synergy capture and cost initiatives supported profitability in the combined footprint.
Amcor's Balance Sheet Updates
As of March 31, 2026, Amcor had $1.59 billion in cash and cash equivalents compared with $0.83 billion as of June 30, 2025. The company generated $556 million of cash in operating activities in the first nine months of fiscal 2026 compared with $276 million in the year-ago comparable period, while net debt stood at $14.27 billion at the quarter-end. The board also declared a quarterly dividend of 65 cents per share.
Amcor Lowers EPS & Free Cash Flow View
AMCR has updated its fiscal 2026 outlook, guiding adjusted earnings of $3.98-$4.03 per share, lower than the prior stated $4.00-$4.15. The company also reduced its free cash flow forecast to $1.5-$1.6 billion from the previously mentioned $1.8-$1.9 billion, citing a shift toward higher inventory levels at higher costs to protect customer service levels amid Middle East conflict-related supply considerations.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Amcor has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Amcor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Amcor is part of the Zacks Containers - Paper and Packaging industry. Over the past month, Packaging Corp. (PKG), a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended March 2026 more than a month ago.
Packaging Corp. reported revenues of $2.37 billion in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $2.40 for the same period compares with $2.31 a year ago.
Packaging Corp. is expected to post earnings of $2.36 per share for the current quarter, representing a year-over-year change of -4.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Packaging Corp.. Also, the stock has a VGM Score of D.
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This article originally published on Zacks Investment Research (zacks.com).