Owens Illinois Earnings: Exceeds Profit Expectation

S&P 500 (NYSE:SPY) component Owens Illinois Inc. (NYSE:OI) reported its results for the third quarter. Owens-Illinois manufactures glass containers primarily for the food and beverage industries in Europe, North America, South America, and Asia Pacific.

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Owens Illinois Inc. Earnings Cheat Sheet

Results: Net income for Owens Illinois Inc. fell to $92 million (55 cents per share) vs. $119 million (72 cents per share) a year earlier. This is a decline of 22.7% from the year-earlier quarter.

Revenue: Fell 6.2% to $1.75 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Owens Illinois Inc. reported adjusted net income of 69 cents per share. By that measure, the company beat the mean estimate of 66 cents per share. It fell short of the average revenue estimate of $1.92 billion.

Quoting Management: Chairman and Chief Executive Officer Al Stroucken said, “On balance, our operations performed well this quarter, boosted by higher demand in the Americas and cost reductions across the company. As planned, our actions to balance European production with lower demand resulted in a decline in operating profit. More importantly, our focused efforts generated more cash this quarter, enabling further deleveraging and share repurchases.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the second quarter, by 7 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has dropped in the past two quarters. In the second quarter, revenue declined 9.9% to $1.77 billion from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 49 cents per share to 41 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $2.62 per share, the average estimate for the fiscal year has fallen from $2.76 ninety days ago.

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

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