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.
Ball Corporation (BLL) Q4 Earnings Beat, Revenues Lag
Read MoreHide Full Article
Ball Corporation reported fourth-quarter 2016 adjusted earnings of 87 cents per share that beat the Zacks Consensus Estimate by a penny.
Earnings increased 9% on a year-over-year basis aided by solid global beverage and aerosol can demand, and contribution from the Rexam acquisition. Earnings for fourth-quarter 2016 also reflect the impact of shares issued for the acquisitions of Rexam and Latapack-Ball.
On a reported basis, the company posted earnings of 8 cents per share compared to 39 cents per share in the prior-year quarter.
Total revenue increased 39% year over year to $2.516 million in the reported quarter. Revenues lagged the Zacks Consensus Estimate of $2.522 million.
Cost of sales increased 39% year over year to $2.0 billion. Gross profit surged 39% year over year to $516 million. Gross margin contracted 10 basis points (bps) to 20.5%.
Selling, general and administrative expenses climbed 48% year over year to $164 million. Adjusted operating income increased 6% to $198 million from $186 million in the year-ago quarter. The company reported operating margin of 7.9%, down 240 bps year over year.
Segment Performance
The Beverage packaging’s North and Central America segment’s revenues increased 30% year over year to $959 million in the reported quarter. Operating earnings of $114 million increased 33% year over year.
Sales at the Beverage packaging, Europe segment were $449 million in the reported quarter, advancing 31% year over year. Operating earnings decreased 26% year over year to $32 million.
The Beverage packaging, South America segment’s revenues soared 138% year over year to $437 million in the reported quarter. Operating earnings of $85 million were a substantial improvement from $37 million in the prior-year quarter.
The Food and Aerosol Packaging segment’s sales were $258 million, declining 9% year over year. Operating earnings increased 33% year over year to $24 million.
In the Aerospace and Technologies segment, sales went up 49% year over year to $241 million. Operating earnings increased 24% year over year to $26 million. The segment’s backlog was at around $1.4 billion at the end of 2016.
Financial Condition
Ball Corporation had cash and cash equivalents of $597 million at the end of 2016 compared with $224 million at 2015 end. As of 2016-end, Ball Corporation’s long-term debt increased to $7,310 million from $4,974 million as of 2015-end.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation reported adjusted earnings per share of $3.49 in 2016, inching up 0.3% from the prior year. Earnings also beat the Zacks Consensus Estimate of $3.48. Revenues increased 14% year over year to $9.116 billion, falling short of the Zacks Consensus Estimate of $9.12 billion.
Outlook
Ball Corporation reaffirmed its long-term financial goals. The company remains optimistic that it will deliver approximately $150 million of synergies in 2017 with the full amount of at least $300 million expected by the end of 2019. Further, the company expects free cash flow to be in the range of $750 million to $850 million after capital spending of approximately $500 million in 2017.
Ball Corporation’s share price has underperformed the Zacks categorized Containers- Metal/ Glass subindustry in the past three months. Ball Corporation’s share price has dipped 2.3% in contrast with 4.2% climb recorded by the sub industry over the said time frame.
Broomfield, CO-based Ball Corporation is the largest manufacturer of beverage cans in North America. Further, it supplies aerospace as well as other technologies and services to the government and customers.
Zacks Rank
Currently, Ball Corporation carries a Zacks Rank #4 (Sell).
ABB Ltd has a positive average earnings surprise of 23.5% in the last four quarters. Altra Industrial Motion generated a positive average earnings surprise of 8.06% in the trailing four quarters. Apogee has delivered an average positive earnings surprise of 13.24% in the last 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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ball Corporation (BLL) Q4 Earnings Beat, Revenues Lag
Ball Corporation reported fourth-quarter 2016 adjusted earnings of 87 cents per share that beat the Zacks Consensus Estimate by a penny.
Earnings increased 9% on a year-over-year basis aided by solid global beverage and aerosol can demand, and contribution from the Rexam acquisition. Earnings for fourth-quarter 2016 also reflect the impact of shares issued for the acquisitions of Rexam and Latapack-Ball.
On a reported basis, the company posted earnings of 8 cents per share compared to 39 cents per share in the prior-year quarter.
Operational Update
Total revenue increased 39% year over year to $2.516 million in the reported quarter. Revenues lagged the Zacks Consensus Estimate of $2.522 million.
Cost of sales increased 39% year over year to $2.0 billion. Gross profit surged 39% year over year to $516 million. Gross margin contracted 10 basis points (bps) to 20.5%.
Selling, general and administrative expenses climbed 48% year over year to $164 million. Adjusted operating income increased 6% to $198 million from $186 million in the year-ago quarter. The company reported operating margin of 7.9%, down 240 bps year over year.
Segment Performance
The Beverage packaging’s North and Central America segment’s revenues increased 30% year over year to $959 million in the reported quarter. Operating earnings of $114 million increased 33% year over year.
Sales at the Beverage packaging, Europe segment were $449 million in the reported quarter, advancing 31% year over year. Operating earnings decreased 26% year over year to $32 million.
The Beverage packaging, South America segment’s revenues soared 138% year over year to $437 million in the reported quarter. Operating earnings of $85 million were a substantial improvement from $37 million in the prior-year quarter.
The Food and Aerosol Packaging segment’s sales were $258 million, declining 9% year over year. Operating earnings increased 33% year over year to $24 million.
In the Aerospace and Technologies segment, sales went up 49% year over year to $241 million. Operating earnings increased 24% year over year to $26 million. The segment’s backlog was at around $1.4 billion at the end of 2016.
Financial Condition
Ball Corporation had cash and cash equivalents of $597 million at the end of 2016 compared with $224 million at 2015 end. As of 2016-end, Ball Corporation’s long-term debt increased to $7,310 million from $4,974 million as of 2015-end.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation Price, Consensus and EPS Surprise | Ball Corporation Quote
Fiscal 2016 Performance
Ball Corporation reported adjusted earnings per share of $3.49 in 2016, inching up 0.3% from the prior year. Earnings also beat the Zacks Consensus Estimate of $3.48. Revenues increased 14% year over year to $9.116 billion, falling short of the Zacks Consensus Estimate of $9.12 billion.
Outlook
Ball Corporation reaffirmed its long-term financial goals. The company remains optimistic that it will deliver approximately $150 million of synergies in 2017 with the full amount of at least $300 million expected by the end of 2019. Further, the company expects free cash flow to be in the range of $750 million to $850 million after capital spending of approximately $500 million in 2017.
Ball Corporation’s share price has underperformed the Zacks categorized Containers- Metal/ Glass subindustry in the past three months. Ball Corporation’s share price has dipped 2.3% in contrast with 4.2% climb recorded by the sub industry over the said time frame.
Broomfield, CO-based Ball Corporation is the largest manufacturer of beverage cans in North America. Further, it supplies aerospace as well as other technologies and services to the government and customers.
Zacks Rank
Currently, Ball Corporation carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space include ABB Ltd , Altra Industrial Motion Corp. and Apogee Enterprises, Inc. (APOG - Free Report) . All three of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ABB Ltd has a positive average earnings surprise of 23.5% in the last four quarters. Altra Industrial Motion generated a positive average earnings surprise of 8.06% in the trailing four quarters. Apogee has delivered an average positive earnings surprise of 13.24% in the last 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 >>