Why Is O-I Glass (OI) Up 9.9% Since Last Earnings Report?

A month has gone by since the last earnings report for O-I Glass (OI). Shares have added about 9.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is O-I Glass due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. O-I Glass Misses Q3 Earnings & Revenue Estimates, Lowers '24 OutlookO-I Glass reported a third-quarter 2024 adjusted loss per share (EPS) of 4 cents, which missed the Zacks Consensus Estimate of earnings of 3 cents. The company posted earnings of 80 cents in the year-ago quarter. The downside was led by significant production curtailment due to sluggish demand.Including one-time items, O-I Glass reported a loss per share of 52 cents for the quarter against earnings per share (EPS) of 32 cents in the prior-year quarter.OI’s Q3 Revenues & Margins Dip Y/YRevenues were $1.68 billion for the quarter under review, down 3.7% from the year-ago quarter due to lower average selling prices and unfavorable foreign currency translation, partially offset by higher sales volume. The top line missed the Zacks Consensus Estimate of $1.79 billion. Sales volume (in tons) rose 2% in the quarter.The cost of sales rose 6.2% year over year to $1.46 billion. Gross profit decreased 40.9% year over year to $215 million. The gross margin was 12.8% for the quarter under review compared with 20.9% in the prior-year quarter. Selling and administrative expenses were down 23.1% year over year to $103 million.Adjusted segment operating profit amounted to $144 million for the reported quarter, down from the prior-year period’s $301 million.O-I Glass Q3 Segmental PerformanceNet sales in the Americas segment fell 0.8% year over year to $940 million for the third quarter. Operating profit was down 24.1% year over year to $88 million. Gains from a 7% rise in sales volumes (in tons) were offset by lower net price.Net sales in the Europe segment were $706 million for the reported quarter, down 7.8% year over year. The segment’s operating profit fell 69.7% year over year to $56 million.OI’s Q3 Cash Flow & Balance Sheet UpdatesO-I Glass had cash and cash equivalents of $755 million at the end of Sept. 30, 2024, down from $913 million at 2023 end. The company generated $191 million in cash from operating activities in the quarter under review compared with the prior-year quarter’s $339 million.OI’s long-term debt was $4.7 billion as of Sept. 30, 2024, fairly flat with that reported on Dec. 31, 2023.O-I Glass’ 2024 OutlookOI lowered its projection for 2024, citing weak demand, a planned temporary production curtailment to reduce inventory levels and lower-than-anticipated shipment levels for the year. The company expects adjusted earnings of 70-80 cents per share, down from the previously stated $1.00-$1.25. Sales volume (in tons) is projected to decrease in the low-single to mid-single digits. The company earlier expected sales volumes to be flat to down in the low-single digits.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -146.03% due to these changes.VGM ScoresAt this time, O-I Glass has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise O-I Glass has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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 O-I Glass, Inc. (OI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks