) reached a new 52-week high of $29.16 on Tuesday, May 21, 2013.
The new high was primarily driven by expected benefits from
higher pricing, modest improvement in volumes, restructuring
actions, cost savings as well as its growth strategy in South
This manufacturer of glass containers has delivered a robust
one-year return of about 48.69% and year-to-date return of about
35.83%. Average volume of shares traded over the last three
months was approximately 1.3 million shares.
Owens-Illinois has been delivering positive earnings surprises
over the past four quarters with an average surprise of 6.60%.
This Zacks Rank #3 (Hold) stock has a market cap of $4.75 billion
and a long-term expected earnings growth rate of 9.05%.
Owens-Illinois will benefit from the restructuring actions
undertaken in North American and Asia-Pacific regions in 2012,
global structural cost reductions as well as its growth strategy
in South America. Furthermore, a new furnace in Brazil in late
2012 will lead to volume growth and logistics savings in the
Owens-Illinois has embarked on a multi-year asset optimization
program in Europe, which includes elimination of underperforming
assets, and reduction of idle capacity. The company outlines
investment in low cost additional capacity and enhancement in
quality, speed and flexibility. This is expected to lead to
improvements in profits in Europe in the second half of 2013.
Weak 1Q13 Earnings, But Improved Outlook
Owens-Illinois' first-quarter 2012 earnings per share of 60 cents
were down 18% from the year-ago earnings of 73 cents per share,
but up 7% from the Zacks Consensus Estimate of 56 cents. Improved
operating profits in South America and Asia-Pacific were offset
by weak economic conditions in Europe.
Despite a weak first quarter dragged down by Europe, the company
expects strong contribution from the emerging regions and stable
market conditions in North America to continue to support growth
while macroeconomic uncertainty in Europe will remain a deterring
factor. The company expects overall modest volume growth in 2013,
and higher prices to counter higher material costs. Adjusted
earnings are expected in the range of $2.60 to $3.00 per share.
The Zacks Consensus Estimate for 2013 is currently at $2.78 per
share, reflecting a 5.23% year over year growth and within the
Other Stocks to Consider
Other stocks in the containers industry that are currently
performing well and have a good visibility include
Berry Plastics Group, Inc.
Graphic Packaging Holding Company
UFP Technologies, Inc.
) with a Zacks Rank #2 (Buy).
BERRY PLASTICS (BERY): Free Stock Analysis
GRAPHIC PKG HLD (GPK): Free Stock Analysis
OWENS-ILLINOIS (OI): Free Stock Analysis
UFP TECH INC (UFPT): Free Stock Analysis
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