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Ball Corporation (BLL) Q2 Earnings: Is a Beat in the Offing?

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We expect Ball Corporation to beat estimates when it reports second-quarter 2017 results on Aug 3, before the opening bell.

Ball Corporation surpassed the Zacks Consensus Estimate in each of the trailing four quarters, generating an average positive surprise of 5.61%. In the preceding quarter, it delivered a positive earnings surprise of 11.76%. Let’s see how things are shaping up for this announcement.

Ball Corporation Price and EPS Surprise

 

Ball Corporation Price and EPS Surprise | Ball Corporation Quote

Why a Likely Positive Surprise?

Our proven model shows that Ball Corporation is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.

Zacks ESP: The Earnings ESP for Ball Corporation is +1.82%. This is because the Most Accurate estimate of 56 cents comes in higher than the Zacks Consensus Estimate of 55 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ball Corporation currently carries a Zacks Rank #3. Though Ball Corporation’s Zacks Rank #3 increases the predictive power of ESP, the ESP of 0.00% makes surprise prediction difficult.

Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors to Influence Q2 Results

In the second quarter, Ball Corporation expects that the food and aerosol segment will benefit from cost savings associated with the West Virginia metal service center closure, and anticipated growth for aluminum aerosol products. Focus on meeting rising demand and effective management of invested capital base to drive EVA dollars will fortify its global packaging businesses.

The company remains on track with free cash flow, EVA dollar and earnings per share growth, as well as cost savings targets for 2017. Further, Ball Corporation’s multi-year value capture plans are on course. It will recognize majority of the $150 million of expected 2017 synergies in the second half of the year. Moreover, its cost-savings benefits in Brazil, including better operational performance, will likely boost its second-half performance. These factors will certainly drive second-quarter results.

Share Price Performance

This metal and plastic packaging manufacturer for beverages and foods has gained 18.50% over the past one year, outperforming its industry’s gain of 16.84%.



Stocks That Warrant a Look

Here are some stocks you may want to consider, as according to our model these have the right combination of elements to post an earnings beat this quarter.

Deere & Company (DE - Free Report) , with an Earnings ESP of +5.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here

Regal Beloit Corporation (RBC - Free Report) , with an Earnings ESP of +0.78% and a Zacks Rank #2.

Applied Industrial Technologies, Inc. (AIT - Free Report) , with an Earnings ESP of +1.30% and a Zacks Rank #3.

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