Crown's Q4 Guidance Driven by Worsening Inflation, RBC Capital Markets Says

11:17 AM EDT, 10/22/2026 (MT Newswires) -- Crown's (CCK) lower-than-expected Q4 guidance was driven by worsening inflation, but it can recover from the inflation impact on its non-alcoholic packaging business in fiscal 2027, RBC Capital Markets said in a research report emailed Thursday. RBC stated it now expects fiscal 2026 and 2026 earnings before interest and taxes of $994 million and $1.04 billion, respectively, compared with $999 million and $1.02 billion earlier. The company reported Q3 adjusted earnings late Monday of $2.39 per diluted share and net sales of $3.71 billion, both above expectations. Meanwhile, Crown projects Q4 adjusted EPS of $1.63 to $1.73, below the consenus estimate of $1.80. The brokerage said it expects $0.12 to $0.13 inflation hit to Q4 EPS, but contractual recovery of non-metal costs in 2027. The company could buy back $700 million of stock in fiscal 2026 and 2027 compared with earlier guidance of $600 million, analysts wrote. The brokerage said it reiterated its outperform rating on the stock and price target of $135 per share. Price: 118.21, Change: +1.99, Percent Change: +1.71