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Owens-Illinois (OI) Q2 Earnings: Will the Stock Disappoint?
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Manufacturer of glass containers, Owens-Illinois, Inc. (OI - Free Report) is scheduled to report second-quarter 2016 results on Jul 27, after the closing bell. In the last-reported quarter, the company reported a year over year increase both in earnings and sales. Let’s see how things are shaping up for this quarter.
Factors to Consider
Owens-Illinois guided second-quarter 2016 adjusted earnings per share in the range of 60–65 cents, which is modestly above the adjusted EPS reported in the year-ago period. The company expects second-quarter results to be lot like the first quarter, driven by acquisitions along with solid legacy business performance.
In the second quarter, Owens-Illinois expects to see less adverse effects from hedging program and benefit from its joint venture with Constellation Brands, which will soon be ramping up its second furnace.
However, political uncertainties continue to aggravate macroeconomic-driven weakness in Brazil. Moreover, price increases may not completely cover the persistently high costs of inflation linked to the strong U.S. dollar. In Europe, heightened competitive activity has been pushing down selling prices. These factors will hurt Owens-Illinois’ results.
Earnings Whispers
Our proven model does not conclusively show that Owens-Illinois will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 62 cents.
Zacks Rank: Owens-Illinois has Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement.
Surprise History
Owens-Illinois has outpaced the Zacks consensus estimate in three of the trailing four quarters, with an average earnings beat of 6.77%. In the last reported quarter, the company posted a positive earnings surprise of 20.00%.
Here are some stocks worth considering, as according to our model they have the right combination of elements to post an earnings beat this quarter.
Allegion Plc (ALLE - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #2.
Ball Corp. has an Earnings ESP of +1.01% and a Zacks Rank #3.
Colfax Corp. has an Earnings ESP of +2.56% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Owens-Illinois (OI) Q2 Earnings: Will the Stock Disappoint?
Manufacturer of glass containers, Owens-Illinois, Inc. (OI - Free Report) is scheduled to report second-quarter 2016 results on Jul 27, after the closing bell. In the last-reported quarter, the company reported a year over year increase both in earnings and sales. Let’s see how things are shaping up for this quarter.
Factors to Consider
Owens-Illinois guided second-quarter 2016 adjusted earnings per share in the range of 60–65 cents, which is modestly above the adjusted EPS reported in the year-ago period. The company expects second-quarter results to be lot like the first quarter, driven by acquisitions along with solid legacy business performance.
In the second quarter, Owens-Illinois expects to see less adverse effects from hedging program and benefit from its joint venture with Constellation Brands, which will soon be ramping up its second furnace.
However, political uncertainties continue to aggravate macroeconomic-driven weakness in Brazil. Moreover, price increases may not completely cover the persistently high costs of inflation linked to the strong U.S. dollar. In Europe, heightened competitive activity has been pushing down selling prices. These factors will hurt Owens-Illinois’ results.
Earnings Whispers
Our proven model does not conclusively show that Owens-Illinois will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 62 cents.
Zacks Rank: Owens-Illinois has Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement.
Surprise History
Owens-Illinois has outpaced the Zacks consensus estimate in three of the trailing four quarters, with an average earnings beat of 6.77%. In the last reported quarter, the company posted a positive earnings surprise of 20.00%.
OWENS-ILLINOIS Price and EPS Surprise
OWENS-ILLINOIS Price and EPS Surprise | OWENS-ILLINOIS Quote
Stocks to Consider
Here are some stocks worth considering, as according to our model they have the right combination of elements to post an earnings beat this quarter.
Allegion Plc (ALLE - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #2.
Ball Corp. has an Earnings ESP of +1.01% and a Zacks Rank #3.
Colfax Corp. has an Earnings ESP of +2.56% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>