Owens-Illinois Earnings: Here’s Why Investors are Ambivalent Now

Owens-Illinois, Inc. (NYSE:OI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Owens-Illinois, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.81 in the quarter versus EPS of $0.81 in the year-earlier quarter.

Revenue: Rose 0.79% to $1.78 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Owens-Illinois, Inc. reported adjusted EPS income of $0.81 per share. By that measure, the company beat the mean analyst estimate of $0.79. It missed the average revenue estimate of $1.81 billion.

Quoting Management: Commenting on the Company`s second quarter results, Chairman and Chief Executive Officer Al Stroucken said, “The Company performed in line with our expectations, notwithstanding weaker than expected demand. We are squarely focused on execution, especially asset optimization and wine share recovery in Europe, as well as labor productivity savings in North America. These actions are allowing us to achieve our targets despite headwinds.”

Key Stats (on next page)…

Revenue increased 8.47% from $1.64 billion in the previous quarter. EPS increased 35% from $0.60 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.86 to a profit $0.85. For the current year, the average estimate has moved down from a profit of $2.81 to a profit of $2.78 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)