We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Owens-Illinois (OI) Up 4.9% Since the Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Owens-Illinois, Inc. (OI - Free Report) . Shares have added about 4.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Owens-Illinois Beats Q4 Earnings, Revenues in Line
Owens-Illinois reported fourth-quarter 2016 adjusted earnings per share of $0.50, outpacing the Zacks Consensus Estimate of $0.47. Earnings also jumped 25% year over year. Including one-time items, the company reported a loss of $0.43 per share in the quarter, compared to a profit of $0.04 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.
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 $0.85 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. The guidance reflects uncertainty in macroeconomic conditions and currency rates as well as other factors.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, Owens-Illinois' stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and growth investors.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Owens-Illinois (OI) Up 4.9% Since the Last Earnings Report?
It has been about a month since the last earnings report for Owens-Illinois, Inc. (OI - Free Report) . Shares have added about 4.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Owens-Illinois Beats Q4 Earnings, Revenues in Line
Owens-Illinois reported fourth-quarter 2016 adjusted earnings per share of $0.50, outpacing the Zacks Consensus Estimate of $0.47. Earnings also jumped 25% year over year. Including one-time items, the company reported a loss of $0.43 per share in the quarter, compared to a profit of $0.04 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.
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 $0.85 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. The guidance reflects uncertainty in macroeconomic conditions and currency rates as well as other factors.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Owens-Illinois, Inc. Price and Consensus
Owens-Illinois, Inc. Price and Consensus | Owens-Illinois, Inc. Quote
VGM Scores
At this time, Owens-Illinois' stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and growth investors.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.