Berry Global Group, Inc. (NYSE:BERY) shares are trading lower on Thursday.
The company reported second-quarter adjusted earnings per share of $1.95, beating the street view of $1.91.
Quarterly revenues of $3.076 billion missed the analyst consensus of $3.155 billion.
Net sales decreased 6% year over year as the pass-through of lower resin prices had a 5% negative impact.
Volumes declined 2%, which was in line with the company’s expectations, and all four operating segments showed sequential volume improvement over the first quarter.
Operating income declined compared to the prior year quarter, reaching $208 million from $301 million. The decrease was primarily attributable to goodwill write-offs related to recent divestitures within the Consumer Packaging International segment.
Additionally, an unfavorable impact from volume and an unfavorable impact from price-cost spread related to the timing of passing through resin costs impacted the performance.
The company expects to be within its leverage target of 2.5x – 3.5x by the end of fiscal 2024 while also returning cash to shareholders during the year.
Berry declared a quarterly cash dividend of $0.275 per share, payable on June 17 to stockholders of record as of June 3.
Outlook: Berry reaffirms 2024 adjusted EPS outlook of $7.35-$7.85 versus consensus of $7.48. The company sees cash flow from operations of $1.35 billion-$1.45 billion and free cash flow of $800 million-$900 million.
Price Action: BERY shares are trading lower by 2.82% to $59.53 at last check Thursday.