Ball Corporation reported first-quarter 2019 adjusted earnings of 49 cents per share, missing the Zacks Consensus Estimate of 50 cents. The reported figure also declined 2% on a year-over-year basis.
On a reported basis, the company posted earnings of 34 cents per share compared with 35 cents per share recorded in the prior-year quarter.
Total revenues remained flat year over year to $2,785 million in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $2,654 million. Higher-than-expected global can demand driven by customers' shifting mix to aluminum packaging and product launches, drove top-line growth.
Operational Update
Cost of sales inched up 0.7% year over year to $2,253 million. Gross profit declined 3% year over year to $532 million. Gross margin came in at 19.1% during the first quarter compared with the prior-year quarter’s 19.6%.
Selling, general and administrative expenses flared up 13.4% year over year to $127 million. Adjusted operating income decreased 8.3% to $275 million from the year-ago quarter’s reported figure of $300 million. The company reported operating margin of 9.8% compared with the prior-year’s 10.7%.
Ball Corporation Price, Consensus and EPS Surprise
Segment Performance
The Beverage packaging’s North and Central America segment revenues went up 9.2% year over year to $1,131 million in the first quarter. Operating earnings of $118 million increased 4.4% year over year.
Sales in the Beverage packaging, Europe segment came in at $638 million in the reported quarter, advancing 4.8% year over year. Operating earnings climbed 6.7% year over year to $64 million.
The Beverage packaging South America segment’s revenues declined 4% year over year to $441 million during the March-end quarter. Operating earnings declined to $68 million from $98 million recorded in the prior-year quarter.
In the Aerospace and Technologies segment, sales increased 24% year over year to $328 million. Operating earnings climbed 20% year over year to $30 million. The segment’s backlog came in at around $2.1 billion.
Financial Condition
Ball Corporation reported cash and cash equivalents of $603 million at the end of the first quarter, up from $477 million held at the end of the prior year quarter. The company used $129 million of cash in operating activities during the first quarter compared with the cash usage of $74 million recorded in the prior-year period. The company’s long-term debt decreased to $6,719 million as of Mar 31, 2019, from $7,131 million as of Mar 31, 2018.
Outlook
Ball Corporation maintained comparable EBITDA guidance of $2 billion and expects free cash flow of more than $1 billion in 2019. This is backed by continued solid demand for aluminum packaging and robust aerospace backlog. In 2019, the company expects to surpass its long-term target of 10-15% earnings per share growth goal.
Share Price Performance
Ball Corporation’s shares have appreciated around 54.8% over the past year, outperforming the industry’s growth of 36.7%.
Zacks Rank & Stocks to Consider
Ball Corporation currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 80.3%, in the past year.
Lawson Products has a stellar expected earnings growth rate of 102.5% for the current year. The stock has appreciated 44.4% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 15.7%, over the past year.
Zacks' Top 10 Stocks for 2019
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Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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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.
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Ball Corporation reported first-quarter 2019 adjusted earnings of 49 cents per share, missing the Zacks Consensus Estimate of 50 cents. The reported figure also declined 2% on a year-over-year basis.
On a reported basis, the company posted earnings of 34 cents per share compared with 35 cents per share recorded in the prior-year quarter.
Total revenues remained flat year over year to $2,785 million in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $2,654 million. Higher-than-expected global can demand driven by customers' shifting mix to aluminum packaging and product launches, drove top-line growth.
Operational Update
Cost of sales inched up 0.7% year over year to $2,253 million. Gross profit declined 3% year over year to $532 million. Gross margin came in at 19.1% during the first quarter compared with the prior-year quarter’s 19.6%.
Selling, general and administrative expenses flared up 13.4% year over year to $127 million. Adjusted operating income decreased 8.3% to $275 million from the year-ago quarter’s reported figure of $300 million. The company reported operating margin of 9.8% compared with the prior-year’s 10.7%.
Ball Corporation Price, Consensus and EPS Surprise
Segment Performance
The Beverage packaging’s North and Central America segment revenues went up 9.2% year over year to $1,131 million in the first quarter. Operating earnings of $118 million increased 4.4% year over year.
Sales in the Beverage packaging, Europe segment came in at $638 million in the reported quarter, advancing 4.8% year over year. Operating earnings climbed 6.7% year over year to $64 million.
The Beverage packaging South America segment’s revenues declined 4% year over year to $441 million during the March-end quarter. Operating earnings declined to $68 million from $98 million recorded in the prior-year quarter.
In the Aerospace and Technologies segment, sales increased 24% year over year to $328 million. Operating earnings climbed 20% year over year to $30 million. The segment’s backlog came in at around $2.1 billion.
Financial Condition
Ball Corporation reported cash and cash equivalents of $603 million at the end of the first quarter, up from $477 million held at the end of the prior year quarter. The company used $129 million of cash in operating activities during the first quarter compared with the cash usage of $74 million recorded in the prior-year period. The company’s long-term debt decreased to $6,719 million as of Mar 31, 2019, from $7,131 million as of Mar 31, 2018.
Outlook
Ball Corporation maintained comparable EBITDA guidance of $2 billion and expects free cash flow of more than $1 billion in 2019. This is backed by continued solid demand for aluminum packaging and robust aerospace backlog. In 2019, the company expects to surpass its long-term target of 10-15% earnings per share growth goal.
Share Price Performance
Ball Corporation’s shares have appreciated around 54.8% over the past year, outperforming the industry’s growth of 36.7%.
Zacks Rank & Stocks to Consider
Ball Corporation currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 80.3%, in the past year.
Lawson Products has a stellar expected earnings growth rate of 102.5% for the current year. The stock has appreciated 44.4% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 15.7%, over the past year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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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