Ball Corporation is one of the world’s leading suppliers of metal packaging to the beverage, food, personal care and household products industries. It also supplies aerospace and other technologies and services to government and commercial customers.
Ball Corporation expects to benefit from increasing EVA dollar generation and multiple growth capital projects ramping up in the remainder of 2016 and beyond. The company has successfully acquired Rexam which will create long-term value. Following the buyout, Ball Corporation is now the world's largest manufacturer of beverage cans. However, unfavorable foreign exchange, elevated aluminum premiums and tough comparisons remain headwinds for the company.
Let’s have a quick look at the second-quarter 2016 earnings release of the company.
Estimate Trend & Surprise History
You should note that the earnings estimate revisions for Ball Corporation depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at 99 cents for the second quarter.
Coming to earnings surprise history, Ball Corporation beat the Zacks Consensus Estimate in 2 out of the trailing 4 quarters with an average positive earnings surprise of around 0.66%.
Earnings
Ball Corporation delivered adjusted earnings of $1.05 per share in the the second-quarter 2016. Earnings beat the Zacks Consensus Estimate of 99 cents. Earnings also increased around 18% on a year over year basis driven by the completion of legacy metal packaging growth projects, a robust aerospace backlog and the recent Rexam acquisition.
Revenue
Ball Corporation missed on revenues in the second quarter. The company posted revenues of $2.03 billion, which fell short of the Zacks Consensus Estimate for revenues of $2.15 billion.
Key Stats
Ball Corporation is poised to benefit from focus on increasing EVA dollar generation, earnings and cash flow. The company expects full-year 2017 free cash flow to be in the range of $750 million to $850 million, excluding one-time items related to the Rexam acquisition.
Given the strength of its underlying businesses and the value potential of the Rexam acquisition, Ball Corporation guides long-term goal of 10% to 15% comparable diluted earnings per share growth over each of the next three years. Further, multiple growth capital projects ramping up in the remainder of 2016 and beyond remains tailwind.
Zacks Rank
Currently, Ball Corporation has a Zacks Rank #3 (Hold), but that could change following Ball Corporation’s earnings report which was just released.
Market Reaction
Ball Corporation’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Ball Corporation’s earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Image: Bigstock
Ball Corporation (BLL) Surpasses Q2 Earnings, Revenues Lag
Ball Corporation is one of the world’s leading suppliers of metal packaging to the beverage, food, personal care and household products industries. It also supplies aerospace and other technologies and services to government and commercial customers.
Ball Corporation expects to benefit from increasing EVA dollar generation and multiple growth capital projects ramping up in the remainder of 2016 and beyond. The company has successfully acquired Rexam which will create long-term value. Following the buyout, Ball Corporation is now the world's largest manufacturer of beverage cans. However, unfavorable foreign exchange, elevated aluminum premiums and tough comparisons remain headwinds for the company.
Let’s have a quick look at the second-quarter 2016 earnings release of the company.
Estimate Trend & Surprise History
You should note that the earnings estimate revisions for Ball Corporation depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at 99 cents for the second quarter.
Coming to earnings surprise history, Ball Corporation beat the Zacks Consensus Estimate in 2 out of the trailing 4 quarters with an average positive earnings surprise of around 0.66%.
BALL CORP Price and EPS Surprise
BALL CORP Price and EPS Surprise | BALL CORP Quote
Earnings
Ball Corporation delivered adjusted earnings of $1.05 per share in the the second-quarter 2016. Earnings beat the Zacks Consensus Estimate of 99 cents. Earnings also increased around 18% on a year over year basis driven by the completion of legacy metal packaging growth projects, a robust aerospace backlog and the recent Rexam acquisition.
Revenue
Ball Corporation missed on revenues in the second quarter. The company posted revenues of $2.03 billion, which fell short of the Zacks Consensus Estimate for revenues of $2.15 billion.
Key Stats
Ball Corporation is poised to benefit from focus on increasing EVA dollar generation, earnings and cash flow. The company expects full-year 2017 free cash flow to be in the range of $750 million to $850 million, excluding one-time items related to the Rexam acquisition.
Given the strength of its underlying businesses and the value potential of the Rexam acquisition, Ball Corporation guides long-term goal of 10% to 15% comparable diluted earnings per share growth over each of the next three years. Further, multiple growth capital projects ramping up in the remainder of 2016 and beyond remains tailwind.
Zacks Rank
Currently, Ball Corporation has a Zacks Rank #3 (Hold), but that could change following Ball Corporation’s earnings report which was just released.
Market Reaction
Ball Corporation’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Ball Corporation’s earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>