Ball Corporation reported fourth-quarter 2020 adjusted earnings of 81 cents per share, beating the Zacks Consensus Estimate of 78 cents. The bottom line also improved 14% on a year-over-year basis. The quarterly results reflect solid global beverage-can volume growth and aerospace backlog.
On a reported basis, the company posted earnings of 68 cents per share compared with the prior-year quarter’s 48 cents.
Total sales were $3,102 million in the reported quarter, up 14% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2,955 million. Global beverage-can volumes were up 12% in the quarter.
Operational Update
Cost of sales amounted to $2,448 million in fourth-quarter 2020, up 13.4% from the year-ago quarter. Gross profit totaled $654 million compared with the year-ago quarter’s $560 million. Gross margin came in at 21% during the reported quarter, flat year over year.
Selling, general and administrative expenses soared 82% year over year to $162 million. Adjusted operating profit improved 6.5% year over year to $362 million. Adjusted operating margin came in at 11.7% compared with the prior-year quarter’s 12.5%.
Segment Performance
The Beverage packaging North and Central America segment revenues increased to $1,301 million during fourth-quarter 2020 from the year-ago quarter’s $1,111 million. Operating earnings came in at $139 million during the reported quarter, flat year over year.
Sales at the Beverage packaging, EMEA segment were $768 million in the fourth quarter, up 19.6% year over year. Operating earnings increased 43.2% year over year to $106 million.
The Beverage packaging South America segment’s revenues increased to $529 million in the fourth quarter from the prior-year period’s $460 million. Operating earnings rose to $107 million from the year-earlier quarter’s $95 million.
In the Aerospace segment, sales were up 5.5% year over year to $420 million. Operating earnings increased to $39 million from the year-ago quarter figure of $37 million. At the end of 2020, the segment’s contracted backlog was $2.4 billion. Contracts already won but not yet booked into current contracted backlog was $5.5 billion.
Financial Condition
Ball Corporation reported cash and cash equivalents of $1,366 million at the end of 2020, down from the $1,798 million witnessed at the end of the 2019. Cash flow from operating activities was $1,432 million in 2020 compared with $1,548 million in 2019. The company’s long-term debt increased to $7.8 billion at the end of 2020 from $6.3 billion at the end of 2019.
2020 Results
Ball Corporation reported adjusted earnings per share of $2.97 in 2020, up 17.4% from the prior-year reported figure of $2.53. Earnings beat the Zacks Consensus Estimate of $2.93. Including one-time items, the bottom line came in at $1.76, up 6% from the $1.66 reported in 2019.
Sales rose 2.7% year over year to $11.8 billion from the prior-year figure of $11.5 billion. The top line surpassed the Zacks Consensus Estimate of $11.6 billion.
Outlook
Given the significant rise in contracted volumes and backlog, the company anticipates current-year capital expenditures to exceed $1.5 billion. Ball Corporation continues to expect long-term diluted earnings per share growth goal of at least 10-15%.
Share Price Performance
Ball Corporation's shares have gained 18.7% over the past year compared with the industry’s growth of 17.9%.
Zacks Rank and Other Stocks to Consider
Ball Corp currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the industrial products sector are AGCO Corporation (AGCO - Free Report) , AptarGroup Inc. (ATR - Free Report) and Crown Holdings, Inc. (CCK - Free Report) . While AGCO flaunts a Zacks Rank #1 (Strong Buy), AptarGroup and Crown Holdings carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO has an expected earnings growth rate of 15.8% for the current fiscal year. The company’s shares have gained around 60% in the past year.
AptarGroup has an expected earnings growth rate of 14.4% for the current fiscal. The company’s shares have appreciated around 17% in the past year.
Crown Holdings has an estimated earnings growth rate of 11.7% for the current fiscal year. The company’s shares have rallied nearly 21% over the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Ball Corporation reported fourth-quarter 2020 adjusted earnings of 81 cents per share, beating the Zacks Consensus Estimate of 78 cents. The bottom line also improved 14% on a year-over-year basis. The quarterly results reflect solid global beverage-can volume growth and aerospace backlog.
On a reported basis, the company posted earnings of 68 cents per share compared with the prior-year quarter’s 48 cents.
Total sales were $3,102 million in the reported quarter, up 14% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2,955 million. Global beverage-can volumes were up 12% in the quarter.
Operational Update
Cost of sales amounted to $2,448 million in fourth-quarter 2020, up 13.4% from the year-ago quarter. Gross profit totaled $654 million compared with the year-ago quarter’s $560 million. Gross margin came in at 21% during the reported quarter, flat year over year.
Selling, general and administrative expenses soared 82% year over year to $162 million. Adjusted operating profit improved 6.5% year over year to $362 million. Adjusted operating margin came in at 11.7% compared with the prior-year quarter’s 12.5%.
Segment Performance
The Beverage packaging North and Central America segment revenues increased to $1,301 million during fourth-quarter 2020 from the year-ago quarter’s $1,111 million. Operating earnings came in at $139 million during the reported quarter, flat year over year.
Sales at the Beverage packaging, EMEA segment were $768 million in the fourth quarter, up 19.6% year over year. Operating earnings increased 43.2% year over year to $106 million.
The Beverage packaging South America segment’s revenues increased to $529 million in the fourth quarter from the prior-year period’s $460 million. Operating earnings rose to $107 million from the year-earlier quarter’s $95 million.
In the Aerospace segment, sales were up 5.5% year over year to $420 million. Operating earnings increased to $39 million from the year-ago quarter figure of $37 million. At the end of 2020, the segment’s contracted backlog was $2.4 billion. Contracts already won but not yet booked into current contracted backlog was $5.5 billion.
Financial Condition
Ball Corporation reported cash and cash equivalents of $1,366 million at the end of 2020, down from the $1,798 million witnessed at the end of the 2019. Cash flow from operating activities was $1,432 million in 2020 compared with $1,548 million in 2019. The company’s long-term debt increased to $7.8 billion at the end of 2020 from $6.3 billion at the end of 2019.
2020 Results
Ball Corporation reported adjusted earnings per share of $2.97 in 2020, up 17.4% from the prior-year reported figure of $2.53. Earnings beat the Zacks Consensus Estimate of $2.93. Including one-time items, the bottom line came in at $1.76, up 6% from the $1.66 reported in 2019.
Sales rose 2.7% year over year to $11.8 billion from the prior-year figure of $11.5 billion. The top line surpassed the Zacks Consensus Estimate of $11.6 billion.
Outlook
Given the significant rise in contracted volumes and backlog, the company anticipates current-year capital expenditures to exceed $1.5 billion. Ball Corporation continues to expect long-term diluted earnings per share growth goal of at least 10-15%.
Share Price Performance
Ball Corporation's shares have gained 18.7% over the past year compared with the industry’s growth of 17.9%.
Zacks Rank and Other Stocks to Consider
Ball Corp currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the industrial products sector are AGCO Corporation (AGCO - Free Report) , AptarGroup Inc. (ATR - Free Report) and Crown Holdings, Inc. (CCK - Free Report) . While AGCO flaunts a Zacks Rank #1 (Strong Buy), AptarGroup and Crown Holdings carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO has an expected earnings growth rate of 15.8% for the current fiscal year. The company’s shares have gained around 60% in the past year.
AptarGroup has an expected earnings growth rate of 14.4% for the current fiscal. The company’s shares have appreciated around 17% in the past year.
Crown Holdings has an estimated earnings growth rate of 11.7% for the current fiscal year. The company’s shares have rallied nearly 21% over the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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