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One of the world's largest aluminum beverage can makers, Crown (CCK +4%), is trading at fresh one-year highs today after delivering a solid beat-and-raise in Q3, buoyed by robust beverage demand across the U.S. CCK supplies cans to several prominent global enterprises, from Coca-Cola (KO) and PepsiCo (PEP) to Anheuser-Busch InBev (BUD) and Molson Coors (TAP). As such, the company's quarterly results provide keen insight into how these companies may perform ahead of their quarterly reports.

• CCK enjoyed global beverage shipment growth of 5% yr/yr in Q3, aided by growth across key markets. Brazil, Europe, Mexico, and the U.S. recorded at least a +5% increase. Strength in beverage can volumes offset lower volumes across most of CCK's other businesses (CCK supplies packaging for transit, food, and aerosol markets). As a result, revenue growth reversed its extended streak of yr/yr declines, inching 0.2% higher to $3.07 bln.
• Segment income on a combined basis expanded by 10% yr/yr, assisting CCK's second straight double-digit earnings beat. The company grew its bottom line by 15% yr/yr to $1.99 per share. Management attributed the gains to excellent manufacturing performance, which included higher efficiencies and lower spoilage. Furthermore, the company's Asian team executed the capacity reduction program announced last year, leading to a full realization of benefits sooner than expected.
• A notable laggard from Q3 came from the Asia Pacific region, where CCK endured an 11% decline in unit volume sales. Demand weakness was seen throughout the region, particularly in Transit Packaging. CCK noted that conditions will likely stay in contraction through at least the end of the year, which kept its FY24 outlook relatively cautious.
• CCK did raise its FY24 adjusted EPS guidance to $6.25-6.35 from $6.00-6.25. However, only one quarter remains in the year, and the increase was essentially due to the upside delivered in Q3. For Q4, CCK projected earnings to be in line with expectations.

Ahead of CCK's Q3 report, concerns mounted after PEP delivered relatively flat Q3 numbers, with North American beverage volumes compressing by 3% yr/yr. However, CCK's diversified customer base helped counter this weak point. A similar story occurred last quarter. PEP's North American beverage volumes slipped by 3%, only for CCK and PEP's competitors, including KO and Keurig Dr Pepper (KDP), to report decent beverage volume growth shortly after. Following CCK's Q3 numbers, this scenario may be unfolding once again.

Bottom line, with CCK's stronghold in the aluminum beverage can industry globally, touting a well-diverse portfolio of customers, the company remains positioned for further upside.