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Ball Corp (BLL) to Report Q2 Earnings: What's in the Offing?

Ball Corporation BLL is scheduled to report second-quarter 2020 results on Aug 6, before the opening bell.

Which Way are the Estimates Headed?

The Zacks Consensus Estimate for Ball Corporation’s quarterly earnings per share is pegged at 57 cents, suggesting a 10.9% year-over-year decline. The Zacks Consensus Estimate for total sales of $2.86 billion indicates a year-over-year fall of 5%.

Let’s see how things have shaped up prior to this announcement.

Price Performance

Shares of Ball Corporation have gained 11.3% in the past three months, compared to the industry's growth of 12.2%.

Key Factors

Ball Corporation continues to execute its strategies of achieving better value for standard products and higher growth for specialty products. The company is focused on pursuing cost-out programs, completing growth capital projects and banking on the inherent sustainability attributes of metal packaging. These efforts are anticipated to have bolstered the company’s margin during the second quarter. Further, the company’s results will likely reflect the positive impact of solid demand for aluminum packaging and solid aerospace backlog.

Moreover, the global beverage-can demand continues to spike as consumers now prefer cans over glass and plastic. The company is well positioned to bank on this demand by investing in capacity expansion and new products. Moreover, higher demand for at-home consumption owing to the coronavirus pandemic is likely to have boosted beverage can demand during the April-June quarter.

The Zacks Consensus Estimate for the Beverage packaging, South America segment’s net sales is pegged at $229 million, calling for a year-over-year plunge of 39.2%. The segment’s operating income is pinned at $35.8 million, suggesting a year-over-year slump of 44.9%. The segment’s results during the quarter under review might have been impacted by temporary closures of smaller grocery stores, gas stations and convenience stores in Brazil.

The Zacks Consensus Estimate for the Beverage packaging, Europe segment’s sales is pinned at $786 million for the soon-to-be-reported quarter, reflecting year-on-year growth of 9.9%. The segment operating income is projected at $93 million, calling for an improvement of 6.9% year over year. Customers’ growing preferences for cans, as well as investment in incremental capacity in the company’s existing facilities are anticipated to have aided the segment’s performance during the period under consideration. However, bleak demand due to country-specific travel restrictions might have hurt the segment during the quarter.

The Zacks Consensus Estimate for the Aerospace segment's revenues is pinned at $398 million for the quarter under review, reflecting a year-over-year increase of about 5%. The segment’s operating income is projected at $39.9 million, indicating year-over-year growth of 5%. A robust aerospace backlog is likely to have contributed to the segment’s top- and bottom-line growth during the quarter. Further, the segment is gaining from multiple projects to expand manufacturing capacity, testing capabilities and engineering and support service.

The Beverage packaging, North and Central America segment is projected to generate sales of $1,332 million in the June-end quarter, reflecting a 3.6% year-over-year increase. Segment operating income is projected at $160 million, indicating a year-over-year improvement of 13.5%. Operational efficiency, new customer contracts, solid demand for aluminum beverage packaging and increased availability of cans are likely to have aided the segment during the quarter. However, the segment has been battling short-term costs due to tight inventories.

Nonetheless, the impact of the COVID-19 crisis on a significant customer or supplier, or on demand for some of its products might have affected the company’s performance during the period under review.

Ball Corporation Price and EPS Surprise

Ball Corporation Price and EPS Surprise

Ball Corporation price-eps-surprise | Ball Corporation Quote

What our Model Indicates?

Our proven model does not conclusively predict an earnings beat for Ball Corporation this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that’s not the case here.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Ball Corporation has an Earnings ESP of -0.95%.

Zacks Rank: Currently, Ball Corporation carries a Zacks Rank #4 (Sell).

Stocks Poised to Beat Earnings Estimates

Here are a few Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

TriMas Corporation TRS has an Earnings ESP of +12.50% and sports a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Regal Beloit Corporation RBC has an Earnings ESP of +9.23% and currently carries a Zacks Rank of 2.

AptarGroup, Inc. ATR has an Earnings ESP of +12.47% and carries a Zacks Rank #3, currently.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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