Yahoo Finance Ball Corp (BALL) Tops on Q1 Earnings, Completes Aerospace Sale
Ball Corporation BALL has reported first-quarter 2024 adjusted earnings of 68 cents per share, beating the Zacks Consensus Estimate of 56 cents.
The bottom line declined 1% year over year. The downside was driven by lower volumes across most segments.
On a reported basis, the company’s earnings per share were $11.61 compared with the prior-year quarter’s 56 cents. The figure is inclusive of gains from aerospace sales. During the quarter, Ball Cop completed the previously announced sale of its aerospace business for $5.6 billion to BAE Systems, Inc.
Total sales were $2.87 billion in the reported quarter compared with $2.98 billion (the figure is exclusive of the company's former aerospace business) in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.18 billion. Global beverage can shipments moved up 3.7%.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote
Operational Update
The cost of sales was $2.29 billion in first-quarter 2024, down 6.1% from the year-ago quarter. The gross profit totaled $591 million, up from the year-ago quarter’s $549 million. The gross margin was 20.6%, an expansion from the prior-year quarter’s 18.4%.
Selling, general and administrative expenses increased 83.5% year over year to $211 million. Comparable segment operating earnings were $332 million compared with the prior-year quarter’s $306 million.
Segmental Performance
Following the sale of the Aerospace business, the company now has three reporting segments.
The Beverage Packaging North and Central America segment’s revenues decreased 6.7% year over year to $1.4 billion in the first quarter. Results have been hurt by lower shipments and the contractual pass-through of lower aluminum costs, which were offset by incremental inflation recovery. We predicted sales of $1.35 billion. Operating earnings amounted to $192 million, up 4.9% year over year. Our estimate for the segment's operating earnings was $123 million.
Sales in the Beverage Packaging EMEA segment were $810 million in the quarter, down 2.9% year over year. The reported figure missed our estimated sales of $859 million. The decline was due to the contractual pass-through of lower aluminum costs, offset by higher shipments. Operating earnings were $85 million, marking 16.4% year-over-year growth. We projected operating earnings of $51 million.
The Beverage Packaging South America segment’s revenues rose 7.1% year over year to $482 million in the reported quarter. The segment witnessed higher volume levels but was offset by the contractual pass-through of lower aluminum costs. Our projection for the segment’s sales was $455 million. Operating earnings rose 10% to $55 million. The reported figure surpassed our estimate of $32 million.
Financial Condition
The company reported cash and cash equivalents of $1.72 billion at the end of first-quarter 2024, up from $0.57 billion at the end of the prior-year quarter. Cash used in operating activities amounted to $1.25 billion in the first quarter of 2024 (including $4.7 billion pertaining to the gain on Aerospace disposal) compared with $0.28 billion reported last year.
The company’s long-term debt decreased to $5.5 billion at the end of Mar 31, 2024, from $7.3 billion at the end of Mar 31, 2023.
Price Performance
The company’s shares have gained 26% over the past year compared with the industry’s growth of 11.4%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Ball Corp currently carries a Zacks #3 Rank (Hold).
Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies AIT, Chart Industries, Inc. GTLS and Cadre Holdings, Inc. CDRE. AIT currently sports a Zacks Rank #1 (Strong Buy), and GTLS and CDRE carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.49 per share, which indicates year-over-year growth of 7.8%. Estimates have moved north by 1% in the past 60 days. The company’s shares have gained 35.4% in the past year.
The Zacks Consensus Estimate for Chart Industries’ 2024 earnings is pegged at $11.98 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 93.6%. The company has a trailing four-quarter average earnings surprise of 75.9%. GTLS shares have gained 12.2% in the past year.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.18 per share. The consensus estimate for 2024 earnings has moved 7% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 53.1% in the past year.
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
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Chart Industries, Inc. (GTLS) : Free Stock Analysis Report
Cadre Holdings, Inc. (CDRE) : Free Stock Analysis Report
Ball Corporation (BALL) : Free Stock Analysis Report
