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Ball Corp (BLL) to Report Q4 Earnings: What's in the Cards?
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Ball Corporation is scheduled to report fourth-quarter 2020 results on Feb 4, before the opening bell.
Q3 Performance
In the third quarter, Ball Corp reported a year-over-year improvement in both earnings and revenues, reflecting solid global beverage-can demand and backlog growth in the Aerospace segment. The company also beat the Zacks Consensus Estimate on both counts.
The company beat estimates in each of the trailing four quarters, the average surprise being 8.9%.
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 78 cents, suggesting growth of 9.9% from the prior-year quarter. The Zacks Consensus Estimate for total sales stands at $2.96 billion, indicating an improvement of 8.7% from the year-ago reported figure.
Price Performance
Shares of Ball Corp have gained 20.6% in the past year, compared with the industry's rally of 21.2%.
Factors to Note
Ball Corp provides key aluminum packaging products and services to consumer-oriented end-markets, such as food and beverages, household and healthcare. Demand has remained robust amid the pandemic. Moreover, the company has been gaining from robust global beverage-can demand as consumers now prefer cans over glass and plastic. These factors might have favored the fourth-quarter performance. The company has been focused on pursuing cost-out programs, completing growth capital projects and banking on the inherent sustainability attributes of metal packaging. These initiatives are likely to have driven the company’s margin in the to-be-reported quarter.
The Beverage packaging, North and Central America segment is projected to generate sales of $1,180 million in the fourth quarter, suggesting a 6% year-over-year increase. Segment operating income is projected at $147 million, indicating year-over-year improvement of 6%. Operational efficiency, new customer contracts and solid demand for aluminum beverage packaging are likely to have benefited the segment in the quarter to be reported. However, the segment has been grappling with short-term costs due to tight inventories.
The Zacks Consensus Estimate for the Beverage packaging, South America segment’s net sales is pegged at $484 million, suggesting growth of 5% from the year-ago reported figure. This reflects demand for beverage cans. The segment’s operating income stands at $93 million, indicating year-over-year decline of 2%.
The Zacks Consensus Estimate for the Beverage packaging, Europe segment’s sales is pegged at $698 million for the to-be-reported quarter, indicating an improvement of 17% from the prior-year quarter. The segment’s operating income is projected at $102 million, indicating an improvement of 52% year over year. Customers’ growing preferences for cans, and investment in incremental capacity in the company’s existing facilities may have contributed to the segment’s performance in the quarter under review.
The Aerospace segment’s contracted backlog remained strong at $2.4 billion as of third-quarter 2020 end. Program execution remains at a high level across the business. The segment continues to win and provide mission-critical programs and technologies to U.S. government, defense, intelligence, reconnaissance and surveillance customers. This is likely to get reflected in the segment’s fourth quarter top line. The Zacks Consensus Estimate for the Aerospace segment's revenues is pegged at $466 million for the quarter under review, indicating year-over-year improvement of about 17%. The segment’s operating income is projected at $45.6 million, suggesting year-over-year growth of 23%.
The company might have incurred higher-than-expected start-up costs due to the ongoing capacity expansion efforts to meet growing demand for cans. Further, incremental costs related to the COVID-19 pandemic may have dampened near-term price/mix. Ball Corp has been importing cans to meet demand until its new plants ramp up, which might have led to higher freight costs. These factors may have impacted margins in the quarter to be reported.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ball Corp this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ball Corp has an Earnings ESP of -4.39%.
Here are some Industrial Products stocks worth considering as these have the right combination of elements to post an earnings beat in their upcoming releases:
Altra Industrial Motion Corp. has a Zacks Rank #2 and an Earnings ESP of +0.48%, at present.
Sealed Air Corporation (SEE - Free Report) has a Zacks Rank of 2 and an Earnings ESP of +2.90%, at present.
Lincoln Electric Holdings, Inc. (LECO - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.55%.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Ball Corp (BLL) to Report Q4 Earnings: What's in the Cards?
Ball Corporation is scheduled to report fourth-quarter 2020 results on Feb 4, before the opening bell.
Q3 Performance
In the third quarter, Ball Corp reported a year-over-year improvement in both earnings and revenues, reflecting solid global beverage-can demand and backlog growth in the Aerospace segment. The company also beat the Zacks Consensus Estimate on both counts.
The company beat estimates in each of the trailing four quarters, the average surprise being 8.9%.
Ball Corporation Price and EPS Surprise
Ball Corporation price-eps-surprise | Ball Corporation Quote
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 78 cents, suggesting growth of 9.9% from the prior-year quarter. The Zacks Consensus Estimate for total sales stands at $2.96 billion, indicating an improvement of 8.7% from the year-ago reported figure.
Price Performance
Shares of Ball Corp have gained 20.6% in the past year, compared with the industry's rally of 21.2%.
Factors to Note
Ball Corp provides key aluminum packaging products and services to consumer-oriented end-markets, such as food and beverages, household and healthcare. Demand has remained robust amid the pandemic. Moreover, the company has been gaining from robust global beverage-can demand as consumers now prefer cans over glass and plastic. These factors might have favored the fourth-quarter performance. The company has been focused on pursuing cost-out programs, completing growth capital projects and banking on the inherent sustainability attributes of metal packaging. These initiatives are likely to have driven the company’s margin in the to-be-reported quarter.
The Beverage packaging, North and Central America segment is projected to generate sales of $1,180 million in the fourth quarter, suggesting a 6% year-over-year increase. Segment operating income is projected at $147 million, indicating year-over-year improvement of 6%. Operational efficiency, new customer contracts and solid demand for aluminum beverage packaging are likely to have benefited the segment in the quarter to be reported. However, the segment has been grappling with short-term costs due to tight inventories.
The Zacks Consensus Estimate for the Beverage packaging, South America segment’s net sales is pegged at $484 million, suggesting growth of 5% from the year-ago reported figure. This reflects demand for beverage cans. The segment’s operating income stands at $93 million, indicating year-over-year decline of 2%.
The Zacks Consensus Estimate for the Beverage packaging, Europe segment’s sales is pegged at $698 million for the to-be-reported quarter, indicating an improvement of 17% from the prior-year quarter. The segment’s operating income is projected at $102 million, indicating an improvement of 52% year over year. Customers’ growing preferences for cans, and investment in incremental capacity in the company’s existing facilities may have contributed to the segment’s performance in the quarter under review.
The Aerospace segment’s contracted backlog remained strong at $2.4 billion as of third-quarter 2020 end. Program execution remains at a high level across the business. The segment continues to win and provide mission-critical programs and technologies to U.S. government, defense, intelligence, reconnaissance and surveillance customers. This is likely to get reflected in the segment’s fourth quarter top line. The Zacks Consensus Estimate for the Aerospace segment's revenues is pegged at $466 million for the quarter under review, indicating year-over-year improvement of about 17%. The segment’s operating income is projected at $45.6 million, suggesting year-over-year growth of 23%.
The company might have incurred higher-than-expected start-up costs due to the ongoing capacity expansion efforts to meet growing demand for cans. Further, incremental costs related to the COVID-19 pandemic may have dampened near-term price/mix. Ball Corp has been importing cans to meet demand until its new plants ramp up, which might have led to higher freight costs. These factors may have impacted margins in the quarter to be reported.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ball Corp this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ball Corp has an Earnings ESP of -4.39%.
Zacks Rank: Currently, the company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some Industrial Products stocks worth considering as these have the right combination of elements to post an earnings beat in their upcoming releases:
Altra Industrial Motion Corp. has a Zacks Rank #2 and an Earnings ESP of +0.48%, at present.
Sealed Air Corporation (SEE - Free Report) has a Zacks Rank of 2 and an Earnings ESP of +2.90%, at present.
Lincoln Electric Holdings, Inc. (LECO - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.55%.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>