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Ball Corp (BALL) Q1 Earnings Top Estimates, Decline Y/Y
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Ball Corporation (BALL - Free Report) has reported first-quarter 2023 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 49 cents. The results include the impacts of 2022 business divestments.
The bottom line declined 10% year over year. The downside was driven by lower volumes across most segments.
On a reported basis, the company’s earnings per share were 56 cents compared with the prior-year quarter’s $1.37.
Total sales were $3,489 million in the reported quarter, down 6.1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3,602 million. Global beverage can shipments were down 6.7%, including the impacts of the 2022 Russia business divestment.
Ball Corporation Price, Consensus and EPS Surprise
The cost of sales was $2,845 million in first-quarter 2023, down 5.7% from the year-ago quarter. The gross profit totaled $644 million, down from the year-ago quarter’s $700 million. The gross margin was 18.5%, a contraction from the prior-year quarter’s 18.8%.
Selling, general and administrative expenses fell 29.6% year over year to $131 million. Comparable segment operating earnings was $366 million compared with the prior-year quarter’s $395 million.
Segmental Performance
The Beverage Packaging North and Central America segment’s revenues decreased 6.5% year over year to $1,504 million in the first quarter. Operating earnings amounted to $183 million, up 5.2% year over year.
Sales in the Beverage Packaging EMEA segment were $834 million in the quarter, down 11.5% year over year. Operating earnings were $73 million, marking a 27% year-over-year downfall.
The Beverage Packaging South America segment’s revenues declined 8.9% year over year to $450 million in the reported quarter. Operating earnings dipped 35.9% to $50 million.
The Aerospace segment’s sales were up 0.8% year over year to $508 million. Operating earnings increased 39.5% to $60 million. At the end of the quarter, the segment’s contracted backlog was $2.8 billion. Contracts already won but not yet booked into the current contracted backlog were $5 billion.
Financial Condition
The company reported cash and cash equivalents of $572 million at the end of first-quarter 2023, up from $437 million at the end of the prior-year quarter. Cash used in operating activities amounted to $275 million in the first quarter 2023 compared with $804 million reported last year.
The company’s long-term debt decreased to $7.3 billion at the end of Mar 31, 2023, from $8.3 billion at the end of Mar 31, 2022.
Price Performance
The company’s shares have lost 37.2% over the past year compared with the industry’s decline of 29.2%.
Image Source: Zacks Investment Research
Zacks Rank and Key Picks
Ball Corp currently carries a Zacks #3 Rank (Hold).
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 19.2% in the last year.
AptarGroup has an average trailing four-quarter earnings surprise of 6.4%. The Zacks Consensus Estimate for ATR’s 2023 earnings is pegged at $4.04 per share. The consensus estimate for 2023 earnings has moved 5% north in the past 60 days. ATR’s shares gained 2.7% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 EPS is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 50% in the last year.
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Ball Corp (BALL) Q1 Earnings Top Estimates, Decline Y/Y
Ball Corporation (BALL - Free Report) has reported first-quarter 2023 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 49 cents. The results include the impacts of 2022 business divestments.
The bottom line declined 10% year over year. The downside was driven by lower volumes across most segments.
On a reported basis, the company’s earnings per share were 56 cents compared with the prior-year quarter’s $1.37.
Total sales were $3,489 million in the reported quarter, down 6.1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3,602 million. Global beverage can shipments were down 6.7%, including the impacts of the 2022 Russia business divestment.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote
Operational Update
The cost of sales was $2,845 million in first-quarter 2023, down 5.7% from the year-ago quarter. The gross profit totaled $644 million, down from the year-ago quarter’s $700 million. The gross margin was 18.5%, a contraction from the prior-year quarter’s 18.8%.
Selling, general and administrative expenses fell 29.6% year over year to $131 million. Comparable segment operating earnings was $366 million compared with the prior-year quarter’s $395 million.
Segmental Performance
The Beverage Packaging North and Central America segment’s revenues decreased 6.5% year over year to $1,504 million in the first quarter. Operating earnings amounted to $183 million, up 5.2% year over year.
Sales in the Beverage Packaging EMEA segment were $834 million in the quarter, down 11.5% year over year. Operating earnings were $73 million, marking a 27% year-over-year downfall.
The Beverage Packaging South America segment’s revenues declined 8.9% year over year to $450 million in the reported quarter. Operating earnings dipped 35.9% to $50 million.
The Aerospace segment’s sales were up 0.8% year over year to $508 million. Operating earnings increased 39.5% to $60 million. At the end of the quarter, the segment’s contracted backlog was $2.8 billion. Contracts already won but not yet booked into the current contracted backlog were $5 billion.
Financial Condition
The company reported cash and cash equivalents of $572 million at the end of first-quarter 2023, up from $437 million at the end of the prior-year quarter. Cash used in operating activities amounted to $275 million in the first quarter 2023 compared with $804 million reported last year.
The company’s long-term debt decreased to $7.3 billion at the end of Mar 31, 2023, from $8.3 billion at the end of Mar 31, 2022.
Price Performance
The company’s shares have lost 37.2% over the past year compared with the industry’s decline of 29.2%.
Image Source: Zacks Investment Research
Zacks Rank and Key Picks
Ball Corp currently carries a Zacks #3 Rank (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , AptarGroup, Inc. (ATR - Free Report) , and OI Glass Inc. (OI - Free Report) . WOR and ATR flaunt a Zacks Rank #1 at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 19.2% in the last year.
AptarGroup has an average trailing four-quarter earnings surprise of 6.4%. The Zacks Consensus Estimate for ATR’s 2023 earnings is pegged at $4.04 per share. The consensus estimate for 2023 earnings has moved 5% north in the past 60 days. ATR’s shares gained 2.7% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 EPS is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 50% in the last year.