Owens-Illinois (OI) Beats on Q4 Earnings, '18 View Upbeat

Zacks Equity Research Published on February 07, 2018

Owens-Illinois, Inc. (OI - Free Report) reported fourth-quarter 2017 adjusted earnings of 55 cents per share, up 10% year over year, ahead of the Zacks Consensus Estimate of 52 cents. The uptick primarily reflected the benefits of the company’s global focus on reducing Total Systems Cost.

Including one-time items, the company reported a loss per share of 81 cents compared with a loss per share of 43 cents in the prior-year quarter.

Operational Update

Owens-Illinois’ net sales were up around 4% year over year to $1.71 billion but fell short of the Zacks Consensus Estimate of $1.72 billion.

The improvement in net sales was due to a 1% increase in price on a global basis and favorable currency translation. Global sales volumes were flat from the prior-year quarter.

Owens-Illinois, Inc. Price, Consensus and EPS Surprise

In the past year, Owens-Illinois has outperformed its industry with respect to price performance. The stock has gained around 11%, while the industry dipped 2.4% during the same time frame.

Zacks Rank & Key Picks

Owens-Illinois carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the same space include H&E Equipment Services, Inc. (HEES - Free Report) , Caterpillar Inc. (CAT - Free Report) and Komatsu Ltd. (KMTUY - Free Report) . While H&E Equipment flaunts a Zacks Rank # 1 (Strong Buy), Caterpillar and Komatsu carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

H&E Equipment Services has an expected long-term earnings growth rate of 18.6%. The company’s shares have surged 50% over the past three months.

Caterpillar has an expected long-term earnings growth rate of 10.3%. Its shares have appreciated 43% over the last three months.

Komatsu has an expected long-term earnings growth rate of 16.2%. Its shares have gone up 51% over the past year.

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