Owens-Illinois (OI) to Post Q2 Earnings: What's in Store?

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Owens-Illinois, Inc.OI is scheduled to report second-quarter 2018 results on Jul 23, after the market closes .

In the last reported quarter, Owens-Illinois delivered earnings of 59 cents per share, beating the Zacks Consensus Estimate by 1.7%. The company's earnings surpassed estimates in the trailing four quarters, recording an average positive earnings surprise of 5.25%.

Let's see how things are shaping up for this announcement.

Owens-Illinois, Inc. Price and EPS Surprise

Owens-Illinois, Inc. Price and EPS Surprise | Owens-Illinois, Inc. Quote

Key Factors to Consider

Owens-Illinois expects adjusted earnings per share for second-quarter 2018 to be approximately 75 cents per share, flat year over year. The company's performance will likely reflect positive currency impact, improvement in business operations and a favorable price-cost spread. However, flat year-over-year shipments and persistent decline in the consumption of beer in the domestic market remain major headwinds.

Further, interest expense is likely to flare up, reflecting higher variable rates in the United States and a strengthening euro. Despite Owens-Illinois' deleveraging and refinancing actions, its debt-to-capitalization ratio remains high at 84%, which is a concerning factor.

Earnings Whispers

Our proven model does not conclusively show that Owens-Illinois is likely to beat estimates this quarter. This is because a stock must have the right combination of the two main ingredients - a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. But that is not the case here as you can see below.

Zacks ESP: Owens-Illinois has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 75 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter .

Zacks Rank: Owens-Illinois has a Zacks Rank #4 (Sell).

We caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Share Price Performance

The stock has depreciated around 32% over the past year, performing even worse than the industry 's 25% decline.

Stocks Worth a Look

Here are a few industrial products stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

Graco Inc. GGG has an Earnings ESP of +4.00% and flaunts a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here . Graco's shares have gained 28% in the past year.

The Earnings ESP for The Manitowoc Company, Inc. MTW is +14.36%. Shares of this Zacks #1 Ranked company have gone up 12% in a year's time.

Terex Corporation TEX has an Earnings ESP of +0.22% and carries a Zacks Rank #2. Its shares have rallied 14% over the past year.

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Terex Corporation (TEX): Free Stock Analysis Report

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Graco Inc. (GGG): Free Stock Analysis Report

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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.

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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