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Owens-Illinois (OI) Beats Q4 Earnings, Revenues in Line
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Owens-Illinois, Inc. (OI - Free Report) reported fourth-quarter 2016 adjusted earnings per share of 50 cents, outpacing the Zacks Consensus Estimate of 47 cents. Earnings also jumped 25% year over year. Shares of the company gained around 5% and closed at $19.83 on Feb 1, after the results came.
Including one-time items, the company reported a loss of 43 cents per share in the quarter, compared to a profit of 4 cents in the year-ago quarter.
Operational Update
Owens-Illinois’ net sales inched up 1% year over year to $1.6 billion. Revenues came in line with the Zacks Consensus Estimate. Sales volumes advanced 1% compared to the prior-year quarter. Currency translation adversely impacted net sales by $16 million or 1%. On a global basis, pricing was up $27 million, primarily driven by price adjustments that reflect cost inflation.
Owens-Illinois, Inc. Price, Consensus and EPS Surprise
Shipments in Europe increased 3% mainly due to gains in beer and food shipments. In North America, volumes were similar to the prior year with higher non-alcoholic beverage and spirits shipments offsetting lower food and beer shipments. Fourth-quarter shipments for legacy Latin America dipped 3% with higher shipments in all product categories except wine. Asia Pacific shipments reported a 6% decline year over year.
Cost of sales was up 7% to $1.43 billion in the quarter. Gross profit plunged 26% to $215 million from $292 million in the year-earlier quarter. Selling and administrative expenses went up 2.4% to $128 million. Segment operating profit improved 8% year over year to $201 million. Segment operating profit margin expanded 110 basis points to 12.2% in the quarter.
Financial Update
At the end of 2016, Owens-Illinois had cash and cash equivalents of $492 million, which increased from $399 million at the end of 2015. Cash flow from operations came in at $758 million in 2016 compared with $612 million in 2015.
At the end of 2016, Owens-Illinois’ long-term debt increased to $5,133 million, compared with $5,345 million at the end of 2015.
2016 Performance
Owens-Illinois reported adjusted earnings per share of $2.31 in 2016, up 15.5% from $2 per share recorded in the prior year. Earnings outpaced the Zacks Consensus Estimate of $2.29 per share. Including one-time items, the bottom line came in at $1.32, surging 55% from 85 cents recorded in 2015.
Revenues increased 8.9% year over year to $6.7 billion from $6.2 billion in 2015. Revenues came in line with the Zacks Consensus Estimate.
Guidance
Owens-Illinois guided adjusted earnings per share outlook for 2017 in the band of $2.40–$2.50 per share. The guidance reflects uncertainty in macroeconomic conditions and currency rates as well as other factors.
Share Price Performance
In the last one year, Owens-Illinois has outperformed the Zacks classified Glass Products sub-industry with respect to price performance. The stock gained 60.9%, while the industry rose 51.8% over the same time frame.
Zacks Rank
Owens-Illinois currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are ABB Ltd , Altra Industrial Motion Corp. and Apogee Enterprises, Inc. (APOG - Free Report) .
Altra Industrial Motion also boasts a Zacks Rank #1 and has delivered an average positive earnings surprise of 8.06% for the trailing four quarters. Apogee, another Zacks Rank #1 stock, has an average positive earnings surprise of 13.24% for the past four quarters.
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Owens-Illinois (OI) Beats Q4 Earnings, Revenues in Line
Owens-Illinois, Inc. (OI - Free Report) reported fourth-quarter 2016 adjusted earnings per share of 50 cents, outpacing the Zacks Consensus Estimate of 47 cents. Earnings also jumped 25% year over year. Shares of the company gained around 5% and closed at $19.83 on Feb 1, after the results came.
Including one-time items, the company reported a loss of 43 cents per share in the quarter, compared to a profit of 4 cents in the year-ago quarter.
Operational Update
Owens-Illinois’ net sales inched up 1% year over year to $1.6 billion. Revenues came in line with the Zacks Consensus Estimate. Sales volumes advanced 1% compared to the prior-year quarter. Currency translation adversely impacted net sales by $16 million or 1%. On a global basis, pricing was up $27 million, primarily driven by price adjustments that reflect cost inflation.
Owens-Illinois, Inc. Price, Consensus and EPS Surprise
Owens-Illinois, Inc. Price, Consensus and EPS Surprise | Owens-Illinois, Inc. Quote
Shipments in Europe increased 3% mainly due to gains in beer and food shipments. In North America, volumes were similar to the prior year with higher non-alcoholic beverage and spirits shipments offsetting lower food and beer shipments. Fourth-quarter shipments for legacy Latin America dipped 3% with higher shipments in all product categories except wine. Asia Pacific shipments reported a 6% decline year over year.
Cost of sales was up 7% to $1.43 billion in the quarter. Gross profit plunged 26% to $215 million from $292 million in the year-earlier quarter. Selling and administrative expenses went up 2.4% to $128 million. Segment operating profit improved 8% year over year to $201 million. Segment operating profit margin expanded 110 basis points to 12.2% in the quarter.
Financial Update
At the end of 2016, Owens-Illinois had cash and cash equivalents of $492 million, which increased from $399 million at the end of 2015. Cash flow from operations came in at $758 million in 2016 compared with $612 million in 2015.
At the end of 2016, Owens-Illinois’ long-term debt increased to $5,133 million, compared with $5,345 million at the end of 2015.
2016 Performance
Owens-Illinois reported adjusted earnings per share of $2.31 in 2016, up 15.5% from $2 per share recorded in the prior year. Earnings outpaced the Zacks Consensus Estimate of $2.29 per share. Including one-time items, the bottom line came in at $1.32, surging 55% from 85 cents recorded in 2015.
Revenues increased 8.9% year over year to $6.7 billion from $6.2 billion in 2015. Revenues came in line with the Zacks Consensus Estimate.
Guidance
Owens-Illinois guided adjusted earnings per share outlook for 2017 in the band of $2.40–$2.50 per share. The guidance reflects uncertainty in macroeconomic conditions and currency rates as well as other factors.
Share Price Performance
In the last one year, Owens-Illinois has outperformed the Zacks classified Glass Products sub-industry with respect to price performance. The stock gained 60.9%, while the industry rose 51.8% over the same time frame.
Zacks Rank
Owens-Illinois currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are ABB Ltd , Altra Industrial Motion Corp. and Apogee Enterprises, Inc. (APOG - Free Report) .
ABB Ltd has delivered an average positive earnings surprise of 23.50% in the last four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion also boasts a Zacks Rank #1 and has delivered an average positive earnings surprise of 8.06% for the trailing four quarters. Apogee, another Zacks Rank #1 stock, has an average positive earnings surprise of 13.24% for the past four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>