Ball Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ball (NYSE:BLL) will unveil its latest earnings on Thursday, July 26, 2012. Ball Corporation supplies metal and plastic packaging to the household products, food and beverage industries as well as aerospace and other technologies and services to governmental and commercial customers.

Ball Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 87 cents per share, a rise of 2.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 90 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 88 cents during the last month. For the year, analysts are projecting profit of $3.09 per share, a rise of 13.2% from last year.

Last quarter, the company came in at net income of 63 cents per share against a mean estimate of profit of 59 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 6 cents.

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Stock Price Performance: Between May 23, 2012 and July 20, 2012, the stock price had risen $2.24 (5.7%), from $39.53 to $41.77. It saw one of its worst periods between November 11, 2011 and November 23, 2011 when shares fell for nine straight days, dropping 6.7% (-$2.36) over that span. The stock price saw one of its best stretches over the last year between March 22, 2012 and April 4, 2012, when shares rose for 10 straight days, increasing 6.8% (+$2.79) over that span.

A Look Back: In the first quarter, profit fell 3.3% to $88.3 million (55 cents a share) from $91.3 million (53 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 1.6% to $2.04 billion from $2.01 billion.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 15.1% in the second quarter of the last fiscal year, 11% in the third quarter of the last fiscal year and 2.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 41.9% in the third quarter of the last fiscal year, by 15.9% in the fourth quarter of the last fiscal year and again in the first quarter.

Wall St. Revenue Expectations: On average, analysts predict $2.35 billion in revenue this quarter, a rise of 1.7% from the year-ago quarter. Analysts are forecasting total revenue of $8.89 billion for the year, a rise of 3% from last year’s revenue of $8.63 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.39 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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