Dj Chmn Allott Registers 98394 Of Silgan Holdings Inc >Slgn

O-I Glass, Inc. OI reported a third-quarter 2024 adjusted loss per share (EPS) of 4 cents, which missed the Zacks Consensus Estimate of earnings of 3 cents. The company posted earnings of 80 cents in the year-ago quarter. The downside was led by significant production curtailment due to sluggish demand.

Including one-time items, O-I Glass reported a loss per share of 52 cents for the quarter against earnings per share (EPS) of 32 cents in the prior-year quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

OI’s Q3 Revenues & Margins Dip Y/Y

Revenues were $1.68 billion for the quarter under review, down 3.7% from the year-ago quarter due to lower average selling prices and unfavorable foreign currency translation, partially offset by higher sales volume. The top line missed the Zacks Consensus Estimate of $1.79 billion. Sales volume (in tons) rose 2% in the quarter.

O-I Glass, Inc. Price, Consensus and EPS Surprise

O-I Glass, Inc. price-consensus-eps-surprise-chart | O-I Glass, Inc. Quote

The cost of sales rose 6.2% year over year to $1.46 billion. Gross profit decreased 40.9% year over year to $215 million. The gross margin was 12.8% for the quarter under review compared with 20.9% in the prior-year quarter. Selling and administrative expenses were down 23.1% year over year to $103 million.

Adjusted segment operating profit amounted to $144 million for the reported quarter, down from the prior-year period’s $301 million.

O-I Glass Q3 Segmental Performance

Net sales in the Americas segment fell 0.8% year over year to $940 million for the third quarter. Our model estimated the segment’s net sales to be $912 million. Operating profit was down 24.1% year over year to $88 million. The figure was higher than our estimate of $70 million. Gains from a 7% rise in sales volumes (in tons) were offset by lower net price.

Net sales in the Europe segment were $706 million for the reported quarter, down 7.8% year over year. The figure lagged our estimate of $792 million. The segment’s operating profit fell 69.7% year over year to $56 million. Our model had predicted an operating profit of $77 million.

OI’s Q3 Cash Flow & Balance Sheet Updates

O-I Glass had cash and cash equivalents of $755 million at the end of Sept. 30, 2024, down from $913 million at 2023 end. The company generated $191 million in cash from operating activities in the quarter under review compared with the prior-year quarter’s $339 million.

OI’s long-term debt was $4.7 billion as of Sept. 30, 2024, fairly flat with that reported on Dec. 31, 2023.

O-I Glass’ 2024 Outlook

OI lowered its projection for 2024, citing weak demand, a planned temporary production curtailment to reduce inventory levels and lower-than-anticipated shipment levels for the year. The company expects adjusted earnings of 70-80 cents per share, down from the previously stated $1.00-$1.25. Sales volume (in tons) is projected to decrease in the low-single to mid-single digits. The company earlier expected sales volumes to be flat to down in the low-single digits.

OI’s Stock Price Performance

Shares of the company have gained 21.1% in a year against the industry’s 11.7% decline.

O-I Glass’ Zacks Rank

O-I Glass currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Packaging Stocks

Packaging Corporation of America PKG reported an adjusted EPS of $2.65 in the third quarter of 2024, beating the Zacks Consensus Estimate of earnings of $2.48. The bottom line was higher than the company’s earnings guidance of $2.45 per share and grew 29% year over year. The upside was driven by higher volume in both segments, and increased prices and mix in the Packaging segment, partially offset by lower prices and mix in the Paper segment.

Sales in the third quarter rose 12.6% year over year to $2.18 billion due to higher volumes. The top line beat the Zacks Consensus Estimate of $2.09 billion.

AptarGroup, Inc. ATR reported a third-quarter 2024 adjusted EPS of $1.49, beating the Zacks Consensus Estimate of $1.43. The bottom line increased 6% year over year from $1.40 (including comparable exchange rates).

Total revenues increased 1.8% year over year to $909 million in the reported quarter. However, the reported figure missed the Zacks Consensus Estimate of $932 million. Core sales, excluding currency and acquisition effects, improved 2% year over year due to strong performances in the pharma and closures segments.

Silgan Holdings SLGN reported a third-quarter adjusted EPS of $1.21, which missed the Zacks Consensus Estimate of $1.23. The bottom line was 4% higher than EPS of $1.16 in the year-ago quarter.

Silgan posted revenues of $1.75 billion, which missed the consensus estimate of $1.84 billion. The figure was 3% lower than the year-ago revenues of $1.8 billion. Revenues declined due to the contractual pass-through of lower raw material costs, mostly in the Metal Containers segment.

Zacks Investment Research

Ball Corporation BALL reported third-quarter 2024 adjusted earnings per share (EPS) of 91 cents, which beat the Zacks Consensus Estimate of 87 cents. The bottom line improved 10% year over year. BALL reported higher volumes in EMEA that offset lower volumes in North and Central America and South America. Despite low volumes, each of its three segments reported year-over-year improvement in profits.

On a reported basis, Ball’s EPS from continuing operations was 63 cents compared with the prior-year quarter’s 42 cents.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Ball Corp.’s Sales Dip Y/Y

Total sales were $3.08 billion, a 1% dip from $3.11 billion (the figure is exclusive of the company's divested aerospace business) in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.17 billion.

Ball Corporation Price, Consensus and EPS Surprise

Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote

BALL Delivers Y/Y Improvement in Margins

The cost of sales was $2.43 billion, down 3.5% from the year-ago quarter. The gross profit totaled $657 million, up from the year-ago quarter’s $599 million. The gross margin was 21.3%, a 200-basis point expansion from the prior-year quarter’s 19.3%.

Selling, general and administrative expenses rose 7% year over year to $142 million. Comparable segment operating earnings were $409 million, 13.6% higher than the prior-year quarter’s $360 million. Segment operating margin was 13.3% compared with 11.6% in the year-ago quarter.

Ball Corp.’s Segment Performances in Q3

The Beverage Packaging North and Central America segment’s revenues decreased 5.5% year over year to $1.46 billion due to lower volumes and price/mix. We predicted sales of $1.53 billion.

Operating earnings amounted to $203 million, up 3.6% year over year as impact of price/mix was partially offset by lower volumes of 3.1%. Our estimate for the segment's operating earnings was $224.6 million.

Sales in the Beverage Packaging EMEA segment were $950 million, up 5.3% year over year aided by higher volumes. The reported figure surpassed our estimate of $926 million

Operating earnings were $128 million, marking 24.3% year-over-year growth. The improvement was driven by higher volumes. We projected operating earnings of $117 million.

The Beverage Packaging South America segment’s revenues dipped 1% year over year to $484 million as favorable price/mix was offset by lower volumes. The impact of disruptive economic and operating conditions in Argentina led to a decline in volumes. Our projection for the segment’s sales was $514 million.

Operating earnings rose 28% to $78 million. The reported figure beat our estimate of $63 million.

BALL’s Cash Flow & Debt Position

The company reported cash and cash equivalents of $1.44 billion at the end of the third quarter, up from $1.34 billion at the end of the prior-year quarter. Cash used in operating activities amounted to $385 billion in the first nine-month period of 2024 (including $4.7 billion pertaining to the gain on Aerospace disposal) against an inflow of $1.13 billion in the comparable period last year.

The company’s long-term debt decreased to $5.35 billion from $7.48 billion at the end of the third quarter of 2023.

In the first nine-month period of 2024, Ball Corp. returned $1.25 billion to shareholders through share repurchases and dividends. It expects to return more than $1.6 billion to shareholders by the end of 2024.

The company recently completed the acquisition of Alucan Entec, S.A., a European impact extruded aluminum packaging business.

Ball Corp.’s Outlook for 2024

The company expects to either meet or exceed its stated goal of more than mid-single-digit comparable EPS growth in 2024 and generate a strong free cash flow. BALL targets to deliver comparable diluted EPS growth of greater than 10% per year in 2025 and thereafter.

BALL Stock’s Price Performance

Ball Corp.’s shares have gained 33.4% over the past year compared with the industry’s 26.5% growth.