Back to top

Image: Bigstock

Unlocking O-I Glass (OI) International Revenues: Trends, Surprises, and Prospects

Read MoreHide Full Article

Did you analyze how O-I Glass (OI - Free Report) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this glass container manufacturer, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

In our recent assessment of OI's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

For the quarter, the company's total revenue amounted to $1.59 billion, experiencing a decline of 13% year over year. Next, we'll explore the breakdown of OI's international revenue to understand the importance of its overseas business operations.

Exploring OI's International Revenue Patterns

During the quarter, Other International contributed $30 million in revenue, making up 1.9% of the total revenue. When compared to the consensus estimate of $32.63 million, this meant a surprise of -8.06%. Looking back, Other International contributed $30 million, or 1.8%, in the previous quarter, and $32 million, or 1.8%, in the same quarter of the previous year.

Europe generated $709 million in revenues for the company in the last quarter, constituting 44.5% of the total. This represented a surprise of -2.36% compared to the $726.13 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $689 million (42%), and in the year-ago quarter, it contributed $799 million (43.6%) to the total revenue.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect O-I Glass to report a total revenue of $1.8 billion in the current fiscal quarter, which suggests a decline of 4.9% from the prior-year quarter. Revenue shares from Other International and Europe are predicted to be 1.8% and 47.3%, corresponding to amounts of $31.39 million and $849.78 million, respectively.

For the full year, the company is expected to generate $7.15 billion in total revenue, up 0.7% from the previous year. Revenues from Other International and Europe are expected to constitute 1.7% ($124.19 million) and 43.8% ($3.13 billion) of the total, respectively.

Wrapping Up

Relying on international markets for revenues, O-I Glass faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

At present, O-I Glass holds a Zacks Rank #4 (Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Review of O-I Glass' Recent Stock Market Performance

The stock has declined by 16.1% over the past month compared to the 1.6% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes O-I Glass, has decreased 4.1% during this time frame. Over the past three months, the company's shares have experienced a loss of 15.1% relative to the S&P 500's 3.8% increase. Throughout this period, the sector overall has witnessed a 5.5% increase.


See More Zacks Research for These Tickers


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


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

Published in