Ball Corporation (BLL) Lags Earnings & Sales Estimates in Q3

Ball Corporation BLL is one of the world’s leading suppliers of metal packaging to the beverage, food, personal care and household products industries. It also supplies aerospace and other technologies and services to government and commercial customers.

Ball Corporation anticipates its food and aerosol business to improve in the third quarter due to incremental progress in the Canton metal service center, improving manufacturing metrics, as well as the ramping-up of its new aluminum aerosol capacity in Europe and India. Further, the company’s focus on expansion of highly sustainable and lightweight ReAl product line will likely drive growth. It also remains on track for transformational work in the second half of 2017.

However, escalating expenses, additional depreciation and non-steel related amortization expense will hurt its performance. Concerns regarding the food can business also remain a headwind for Ball Corporation. Further, the company’s third quarter is a seasonally slow quarter.

Let’s have a quick look at the third-quarter 2017 earnings release of the company.

Estimate Trend & Surprise History

You should note that the earnings estimate revisions for Ball Corporation have remained stable prior to the earnings release. The Zacks Consensus Estimate currently stands at 59 cents for the third quarter.

As regards earnings surprise, Ball Corporation has outpaced the Zacks Consensus Estimate in three out of the past four quarters, with an average beat of 3.00%.

Ball Corporation Price and EPS Surprise

 

Ball Corporation Price and EPS Surprise | Ball Corporation Quote

Earnings

Ball Corporation delivered adjusted earnings of 52 cents per share in the third-quarter 2017. Earnings lagged the Zacks Consensus Estimate of 59 cents.

Revenue

Ball Corporation missed revenues in the third quarter. The company posted revenues of $2.908 billion, which fell short the Zacks Consensus Estimate for revenues of $2.942 billion.

Key Stats

Ball Corporation updated its financial goals for 2017. The company expects its free cash flow will be  in excess of $850 million and capital spending will be in the range of $550 million.

The company reaffirmed its financial goals for 2019. The company expects its comparable EBITDA will be $2 billion and free cash flow is estimated to be in excess of $1 billion. It also expects to achieve $300 million plus of run-rate synergies.

Zacks Rank

Currently, Ball Corporation has a Zacks Rank #4 (Sell), but that could change following Ball Corporation’s earnings report which was just released.

Market Reaction

Ball Corporation’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this Ball Corporation’s earnings report later!

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