Back to top

Image: Bigstock

O-I Glass (OI) Q4 Earnings & Revenues Beat Estimates, Rise Y/Y

Read MoreHide Full Article

O-I Glass, Inc. (OI - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 38 cents, which beat the Zacks Consensus Estimate of 32 cents. The bottom line was higher than the company’s most recent guidance of 28-33 cents per share. On a year-over-year basis, earnings increased 6%.

Including one-time items, O-I Glass reported EPS of 8 cents for the quarter compared with 27 cents in the prior-year quarter.

Operational Update

Revenues were $1.69 billion for the quarter under review, up 6.6% from the year-ago quarter’s level. The top line surpassed the Zacks Consensus Estimate of $1.57 billion. The unfavorable impacts of foreign currency translation and lower sales volumes were somewhat offset by higher average selling prices.

Cost of sales was up 6.2% year over year to $1,434 million. Gross profit increased 8.8% year over year to $259 million. The gross margin was 15.3% for the quarter under review compared with 15% in the prior-year quarter. Selling and administrative expenses were up 16.7% year over year to $126 million.

Adjusted segment operating profit amounted to $206 million for the reported quarter, up from the prior-year period’s $177 million. The segment operating margin was 12.2% compared with the prior-year quarter’s 11.1%.

O-I Glass, Inc. Price, Consensus and EPS Surprise

 

O-I Glass, Inc. Price, Consensus and EPS Surprise

O-I Glass, Inc. price-consensus-eps-surprise-chart | O-I Glass, Inc. Quote

Segmental Performance

Net sales in the Americas segment rose 3.4% year over year to $937 million for the fourth quarter. Operating profit was down 16.2% year over year to $83 million.

Net sales in the Europe segment were $724 million for the reported quarter, up 11.9% year over year. The segment’s operating profit rose 57.7% year over year to $123 million.

Financial Update

O-I Glass had cash and cash equivalents of $773 million at the end of Dec 31, 2022, up from the $725 million at 2021-end. The company generated $378 million of cash in operating activities in the quarter under review compared with the prior-year quarter’s inflow of $231 million.

Its long-term debt was $4.37 billion as of Dec 31, 2022, down from $4.75 billion as of Dec 31, 2021.

2022 Performance

For 2022, O-I Glass’ adjusted earnings were $2.30, which surpassed the Zacks Consensus Estimate of $2.25. It also marked a 26% improvement from the last year, driven by solid net price realization, continued sales volume growth and favorable operating performance. OI expected adjusted earnings per share between $2.20 and $2.25 for 2022.

Including one-time items, the company’s earnings were $3.67 per share for fiscal 2022 compared with 88 cents in fiscal 2021.

Total revenues advanced 8% year over year to $6.9 billion, surpassing the Zacks Consensus Estimate of $6.73 billion.

Outlook

O-I Glass expects adjusted earnings of more than $2.50 per share. This compares favorably with adjusted earnings per share of $2.30 reported in 2022. Sales volume growth (in tons) is projected to be flat to up 1%. OI expects free cash flow in 2023 to be more than $150 million, while adjusted free cash flow is expected to be higher than $450 million.

For the first quarter of 2023, OI expects adjusted earnings between 80 cents and 85 cents per share, whereas it reported 56 cents per share in the prior-year quarter. Sales volume growth (in tons) is anticipated to be down in the low-single digits.

Price Performance

Shares of the company have improved 41.4% over the past year compared with the industry’s growth of 3.5%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Other Stocks to Consider

O-I Glass currently sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other top-ranked stocks from the Industrial Products sector are KnowBe4, Inc. , Tenaris (TS - Free Report) , and Deere & Company (DE - Free Report) . KNBE and TS flaunt a Zacks Rank #1 at present, and DE has a Zacks Rank #2 (Buy).

KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 24 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 9% in the past 60 days. KNBE’s shares have gained 4% in a year.

Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 36.9% in the last year.

The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 11.7% in the last year.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


O-I Glass, Inc. (OI) - free report >>

Deere & Company (DE) - free report >>

Tenaris S.A. (TS) - free report >>

Published in