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Owens-Illinois (OI) Misses Earnings & Sales Estimates in Q4
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Owens-Illinois, Inc. (OI - Free Report) reported fourth-quarter adjusted earnings of 61 cents per share, up 7% year over year. The figure was in line with management’s guidance. However, earnings missed the Zacks Consensus Estimate of 63 cents.
Including one-time items, the company reported loss from continuing operations of 78 cents per share in the reported quarter compared with a loss of 81 cents in the prior-year quarter.
Operational Update
Net sales declined 4.5% year over year to $1.64 billion, mainly due to a drop in shipment in the fourth quarter. Sales missed the Zacks Consensus Estimate of $1.68 billion.
Cost of sales declined 4% year over year to $1,341 million. Gross profit declined 8.1% year over year to $294 million. Selling and administrative expenses contracted 5% year over year to $116 million. Segment operating profit dropped 0.5% year over year to $211 million.
Owens-Illinois, Inc. Price, Consensus and EPS Surprise
Net sales at the Americas segment declined 8% year over year to $861 million during the fourth quarter. Operating profit declined 18% year over year to $127 million.
Net sales at the Europe segment were $560 million, down 0.5% year over year in the quarter. Segment operating profit increased 30% year over year to $56 million driven by an increase in glass container shipments.
Net sales in the Asia Pacific region decreased 7% year over year to $184 million in the reported quarter. Operating profit doubled to $28 million from $14 million a year ago on lower operational costs.
Financial Update
Owens-Illinois had cash and cash equivalents of $512 million at the end of the 2018, up from $492 million at the end of 2017. The company generated $793 million of cash flow from operating activities during the 12-month period ended Dec 31, 2018, compared with $724 million in the comparable period last year. The company’s long-term debt declined to $5.2 billion as of Dec 31, 2018, compared with $5.1 billion as of Dec 31, 2017.
2018 Results
Owens-Illinois reported adjusted earnings per share of $2.72 in 2018, up 2.6% from $2.65 in the prior year. Earnings missed the Zacks Consensus Estimate of $2.74.
Sales were up 0.1% year over year to $6.88 billion from $6.87 billion in 2017. The top line missed the Zacks Consensus Estimate of $6.92 billion.
2019 Outlook
The company expects adjusted earnings to be around $3.00 a share. Cash provided by continuing operations is expected at $740 million and adjusted free cash flow is estimated at around $400 million.
Share Price Performance
Owens-Illinois’ stock has lost around 11.8% in a year’s time, compared with the industry’s decline of 13.1%.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Industrial Products sector are Axon Enterprise, Inc , Alarm.com Holdings, Inc. (ALRM - Free Report) and EnerSys (ENS - Free Report) . While Axon and Alarm.com currently flaunt a Zacks Rank #1 (Strong Buy), EnerSys carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon has an expected earnings growth rate of 14.5% for 2019. The company’s shares have rallied 102.3% in the past year.
Alarm.com has an expected earnings growth rate of 7.8% for 2019. The stock has climbed 65.3% in a year’s time.
EnerSys has an expected earnings growth rate of 9.5% for 2019. Its shares have gained 33.3% in the past year.
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Image: Bigstock
Owens-Illinois (OI) Misses Earnings & Sales Estimates in Q4
Owens-Illinois, Inc. (OI - Free Report) reported fourth-quarter adjusted earnings of 61 cents per share, up 7% year over year. The figure was in line with management’s guidance. However, earnings missed the Zacks Consensus Estimate of 63 cents.
Including one-time items, the company reported loss from continuing operations of 78 cents per share in the reported quarter compared with a loss of 81 cents in the prior-year quarter.
Operational Update
Net sales declined 4.5% year over year to $1.64 billion, mainly due to a drop in shipment in the fourth quarter. Sales missed the Zacks Consensus Estimate of $1.68 billion.
Cost of sales declined 4% year over year to $1,341 million. Gross profit declined 8.1% year over year to $294 million. Selling and administrative expenses contracted 5% year over year to $116 million. Segment operating profit dropped 0.5% year over year to $211 million.
Owens-Illinois, Inc. Price, Consensus and EPS Surprise
Owens-Illinois, Inc. Price, Consensus and EPS Surprise | Owens-Illinois, Inc. Quote
Segmental Performance
Net sales at the Americas segment declined 8% year over year to $861 million during the fourth quarter. Operating profit declined 18% year over year to $127 million.
Net sales at the Europe segment were $560 million, down 0.5% year over year in the quarter. Segment operating profit increased 30% year over year to $56 million driven by an increase in glass container shipments.
Net sales in the Asia Pacific region decreased 7% year over year to $184 million in the reported quarter. Operating profit doubled to $28 million from $14 million a year ago on lower operational costs.
Financial Update
Owens-Illinois had cash and cash equivalents of $512 million at the end of the 2018, up from $492 million at the end of 2017. The company generated $793 million of cash flow from operating activities during the 12-month period ended Dec 31, 2018, compared with $724 million in the comparable period last year. The company’s long-term debt declined to $5.2 billion as of Dec 31, 2018, compared with $5.1 billion as of Dec 31, 2017.
2018 Results
Owens-Illinois reported adjusted earnings per share of $2.72 in 2018, up 2.6% from $2.65 in the prior year. Earnings missed the Zacks Consensus Estimate of $2.74.
Sales were up 0.1% year over year to $6.88 billion from $6.87 billion in 2017. The top line missed the Zacks Consensus Estimate of $6.92 billion.
2019 Outlook
The company expects adjusted earnings to be around $3.00 a share. Cash provided by continuing operations is expected at $740 million and adjusted free cash flow is estimated at around $400 million.
Share Price Performance
Owens-Illinois’ stock has lost around 11.8% in a year’s time, compared with the industry’s decline of 13.1%.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Industrial Products sector are Axon Enterprise, Inc , Alarm.com Holdings, Inc. (ALRM - Free Report) and EnerSys (ENS - Free Report) . While Axon and Alarm.com currently flaunt a Zacks Rank #1 (Strong Buy), EnerSys carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon has an expected earnings growth rate of 14.5% for 2019. The company’s shares have rallied 102.3% in the past year.
Alarm.com has an expected earnings growth rate of 7.8% for 2019. The stock has climbed 65.3% in a year’s time.
EnerSys has an expected earnings growth rate of 9.5% for 2019. Its shares have gained 33.3% in the past year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
See This Ticker Free >>