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Ball Corporation's (BLL) Prospects Bleak on Low Can Demand
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On Apr 5, we issued an updated research report on Ball Corporation .
Sluggish can demand continues to hamper the company’s performance. In addition, escalating expenses, poor end-market demand for carbonated drinks, as well as the dismal European economy are likely to hurt Ball Corporation’s performance in 2017.
Notably, Ball Corporation expects overall can demand to remain relatively flat in 2017. The company also foresees overall flat volumes for the year, but it might be a little softer in the first half and a little stronger in the second half.
Ball Corporation projects full-year 2017 interest expense to be roughly $280 million. The company anticipates year-end net debt to be in the range of $6.2–$6.3 billion. Full-year effective tax rate for 2017 on comparable earnings is likely to be around 28%.
Further, corporate undistributed costs for full-year 2017 is now estimated to be nearly $115 million, due to higher IT and certain costs which were initially allocated to the segments, like European pensions. These escalated expenses are expected to affect earnings for this year.
Additionally, persistent weakness at the end-market level for carbonated drinks, beer and food pose challenges for the company. The economies in Europe continue to be weak, which, in turn, are predicted to hit Ball Corporation’s performance.
Moreover, Ball Corporation underperformed the Zacks classified Containers- Metal/ Glass sub-industry with respect to price performance over the past one year. The stock gained around 3%, while the industry recorded growth of 11.1%.
Ball Corporation currently has a Zacks Rank #4 (Sell).
ACCO Brands Corporation has an average positive earnings surprise of 24.74% for the trailing four quarters. Casella Waste Systems has an impressive average earnings surprise of 165.21% for the last four quarters, while Roper Technologies has an average earnings surprise of 0.92%.
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Ball Corporation's (BLL) Prospects Bleak on Low Can Demand
On Apr 5, we issued an updated research report on Ball Corporation .
Sluggish can demand continues to hamper the company’s performance. In addition, escalating expenses, poor end-market demand for carbonated drinks, as well as the dismal European economy are likely to hurt Ball Corporation’s performance in 2017.
Notably, Ball Corporation expects overall can demand to remain relatively flat in 2017. The company also foresees overall flat volumes for the year, but it might be a little softer in the first half and a little stronger in the second half.
Ball Corporation projects full-year 2017 interest expense to be roughly $280 million. The company anticipates year-end net debt to be in the range of $6.2–$6.3 billion. Full-year effective tax rate for 2017 on comparable earnings is likely to be around 28%.
Further, corporate undistributed costs for full-year 2017 is now estimated to be nearly $115 million, due to higher IT and certain costs which were initially allocated to the segments, like European pensions. These escalated expenses are expected to affect earnings for this year.
Additionally, persistent weakness at the end-market level for carbonated drinks, beer and food pose challenges for the company. The economies in Europe continue to be weak, which, in turn, are predicted to hit Ball Corporation’s performance.
Moreover, Ball Corporation underperformed the Zacks classified Containers- Metal/ Glass sub-industry with respect to price performance over the past one year. The stock gained around 3%, while the industry recorded growth of 11.1%.
Ball Corporation currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the industrial products sector include ACCO Brands Corporation (ACCO - Free Report) , Casella Waste Systems, Inc. (CWST - Free Report) and Roper Technologies, Inc. (ROP - Free Report) . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ACCO Brands Corporation has an average positive earnings surprise of 24.74% for the trailing four quarters. Casella Waste Systems has an impressive average earnings surprise of 165.21% for the last four quarters, while Roper Technologies has an average earnings surprise of 0.92%.
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 >>