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.
O-I Glass, Inc. (OI - Free Report) reported first-quarter 2022 adjusted earnings of 56 cents, which surpassed the Zacks Consensus Estimate of 41 cents. The bottom line came in higher than the company’s guidance of 38 cents to 43 cents. On a year-over-year basis, earnings surged 60%, driven by gains from higher sales volumes and production, favorable pricing, and benefits from OI’s ongoing margin expansion initiatives.
Including one-time items, OI reported earnings per share of 55 cents for the quarter under review against a loss per share of 62 cents in the prior-year period.
Operational Update
Revenues increased 13% year over year to $1.69 billion for the quarter under review and beat the Zacks Consensus Estimate of $1.54 billion. Excluding the impact of recent divestitures that had an impact of $4 million, average selling prices increased 8.6% and contributed $140 million to sales. Meanwhile, shipments were up 6.4%, boosting net sales by $73 million. Unfavorable foreign currency translation had a negative impact of $37 million. Other sales were up $20 million due higher machine part sales to third parties.
Cost of sales was up 10.5% year over year to $1,388 million. Gross profit increased 25% year on year to $304 million. Gross margin was 18% for the quarter under review compared with 16.3% in the prior-year period. Selling and administrative expenses flared up 16.7% year over year to $119 million.
Segment operating profit amounted to $231 million for the reported quarter, up from the prior-year period’s $175 million. The segment operating margin was 13.7%, reflecting a 200-basis point expansion year over year.
Segmental Performance
Net sales in the Americas segment grew 12% year over year to $940 million for the first quarter. Operating profit rose 29% year over year to $129 million.
Net sales in the Europe segment were $708 million for the reported quarter, up 10.8% year over year. The segment’s operating profit surged 36% year over year to $102 million.
Financial Update
O-I Glass had cash and cash equivalents of $519 million at the end of the first quarter of 2022, down from the $725 million at the 2021-end. The company utilized $73 million of cash in operating activities in the quarter under review compared with the prior-year quarter’s outflow of $56 million.
Its long-term debt was $4.6 billion as of Mar 31, 2022, down from $4.75 billion as of Dec 31, 2021.
The company has completed or entered into sales agreements totaling $1.3 billion as part of its ongoing portfolio optimization program. O-I Glass stated that it is on track to achieve its target of $50 million of benefits this year.
Outlook for 2022
For 2022, O-I Glass expects strong demand for healthy, sustainable glass containers to continue, thereby supporting its earnings. The company projects adjusted earnings per share between $1.85 and $2.10 for the current year, up from the previous $1.85-$2.00.
For the current quarter, the company anticipates adjusted earnings between 55 cents and 60 cents per share.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have fallen 18.7% over the past year compared with the industry’s decline of 35.5%.
Zacks Rank & Stocks to Consider
O-I Glass currently carries a Zacks Rank #3 (Hold).
Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days.
Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year.
Sonoco has an expected earnings growth rate of 47.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 13% in the past 60 days.
SON has a trailing four-quarter earnings surprise of 1.85%, on average. SON’s shares have declined 4.5% in the past year.
Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%.
GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
O-I Glass' (OI) Q1 Earnings Beat Estimates, Ups '22 Guidance
O-I Glass, Inc. (OI - Free Report) reported first-quarter 2022 adjusted earnings of 56 cents, which surpassed the Zacks Consensus Estimate of 41 cents. The bottom line came in higher than the company’s guidance of 38 cents to 43 cents. On a year-over-year basis, earnings surged 60%, driven by gains from higher sales volumes and production, favorable pricing, and benefits from OI’s ongoing margin expansion initiatives.
Including one-time items, OI reported earnings per share of 55 cents for the quarter under review against a loss per share of 62 cents in the prior-year period.
Operational Update
Revenues increased 13% year over year to $1.69 billion for the quarter under review and beat the Zacks Consensus Estimate of $1.54 billion. Excluding the impact of recent divestitures that had an impact of $4 million, average selling prices increased 8.6% and contributed $140 million to sales. Meanwhile, shipments were up 6.4%, boosting net sales by $73 million. Unfavorable foreign currency translation had a negative impact of $37 million. Other sales were up $20 million due higher machine part sales to third parties.
OI Glass, Inc. Price, Consensus and EPS Surprise
OI Glass, Inc. price-consensus-eps-surprise-chart | OI Glass, Inc. Quote
Cost of sales was up 10.5% year over year to $1,388 million. Gross profit increased 25% year on year to $304 million. Gross margin was 18% for the quarter under review compared with 16.3% in the prior-year period. Selling and administrative expenses flared up 16.7% year over year to $119 million.
Segment operating profit amounted to $231 million for the reported quarter, up from the prior-year period’s $175 million. The segment operating margin was 13.7%, reflecting a 200-basis point expansion year over year.
Segmental Performance
Net sales in the Americas segment grew 12% year over year to $940 million for the first quarter. Operating profit rose 29% year over year to $129 million.
Net sales in the Europe segment were $708 million for the reported quarter, up 10.8% year over year. The segment’s operating profit surged 36% year over year to $102 million.
Financial Update
O-I Glass had cash and cash equivalents of $519 million at the end of the first quarter of 2022, down from the $725 million at the 2021-end. The company utilized $73 million of cash in operating activities in the quarter under review compared with the prior-year quarter’s outflow of $56 million.
Its long-term debt was $4.6 billion as of Mar 31, 2022, down from $4.75 billion as of Dec 31, 2021.
The company has completed or entered into sales agreements totaling $1.3 billion as part of its ongoing portfolio optimization program. O-I Glass stated that it is on track to achieve its target of $50 million of benefits this year.
Outlook for 2022
For 2022, O-I Glass expects strong demand for healthy, sustainable glass containers to continue, thereby supporting its earnings. The company projects adjusted earnings per share between $1.85 and $2.10 for the current year, up from the previous $1.85-$2.00.
For the current quarter, the company anticipates adjusted earnings between 55 cents and 60 cents per share.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have fallen 18.7% over the past year compared with the industry’s decline of 35.5%.
Zacks Rank & Stocks to Consider
O-I Glass currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Alcoa (AA - Free Report) , Sonoco Products Company (SON - Free Report) and Greif Inc. (GEF - Free Report) . While AA and SON flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days.
Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year.
Sonoco has an expected earnings growth rate of 47.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 13% in the past 60 days.
SON has a trailing four-quarter earnings surprise of 1.85%, on average. SON’s shares have declined 4.5% in the past year.
Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%.
GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time.