On Jun 8, Zacks Investment Research downgraded Ball
Corporation ( BLL ) to a Zacks Rank
#5 (Strong Sell).BERRY PLASTICS (BERY): Free Stock Analysis
ReportBALL CORP (BLL): Free Stock Analysis ReportRESOLUTE FOREST (RFP): Free Stock Analysis
ReportROCK-TENN CO (RKT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
Ball Corporation's earnings estimates witnessed a downward trend
after reporting disappointing first quarter 2013 results on Apr 25.
Earnings estimates for this manufacturer of metal and plastic
packaging for beverages and foods have been on the downside due to
slow start to volumes in the second quarter and continued headwinds
- weakness in Europe, pricing pressure in China, loss of market
share and the impact of sequestration on the Aerospace and
Ball Corporation's first-quarter 2013 adjusted earnings declined
8% to 58 cents per share from 63 cents per share in the year-ago
quarter. The results also fell short of the Zacks Consensus
Estimate of 64 cents, a negative surprise of 9.38%. In Europe, soft
beverage can volumes, higher costs and operational setbacks related
to its regional office move and higher input costs affected Ball in
Continued weakness in Europe will continue to weigh on Ball's
European business in the next year. Furthermore, the company
continues to face pricing pressure in China given excess capacity
in the region. Recently, Ball has lost customers who shifted buying
from new suppliers. This loss of share will weigh on Ball's results
as well as on investor sentiment. Furthermore, Ball's Aerospace and
Technologies showed some weakness during the quarter as a result of
sequestration. The implementation of sequestration in the U.S.
federal government has impacted the timing of projects.
Given the weak first quarter results and a slow start to volumes
in the second quarter, Ball also stated that the company will be
unable to achieve its long-term target of 10% to 15% diluted
earnings per share growth in 2013.
Over the last 60 days, the Zacks Consensus Estimate for fiscal
2013 decreased 4% to $3.19 per share and for fiscal 2014 it went
down 4% to $3.55 per share.
Other Stocks to Consider
Not all stocks in the industry are performing as poorly as Ball
Corporation. Resolute Forest Products Inc. ( RFP ) with a Zacks Rank
#1(Strong Buy), and Rock-Tenn Company ( RKT ) and Berry
Plastics Group, Inc. ( BERY ), carrying a
Zacks Rank #2 (Buy) are some stocks worth considering.