Owens-Illinois Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Owens-Illinois (NYSE:OI) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. Owens-Illinois manufactures glass containers primarily for the food and beverage industries in Europe, North America, South America, and Asia Pacific.

Owens-Illinois Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 37 cents per share, a decline of 22.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 40 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 37 cents during the last month. Analysts are projecting profit to rise by 9.7% compared to last year’s $2.60.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at profit of 69 cents a share versus the estimate of net income of 66 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit fell 22.4% to $90 million (54 cents a share) from $116 million (70 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 6.2% to $1.75 billion from $1.86 billion.

Here’s how Owens-Illinois traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Stock Price Performance: Between October 26, 2012 and January 24, 2013, the stock price rose $3.34 (17.1%), from $19.56 to $22.90. The stock price saw one of its best stretches over the last year between December 13, 2012 and December 20, 2012, when shares rose for six straight days, increasing 8.4% (+$1.65) over that span. It saw one of its worst periods between August 20, 2012 and September 4, 2012 when shares fell for 11 straight days, dropping 9.5% (-$1.79) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 3.8% in revenue from the year-earlier quarter to $1.75 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 9.9% in the second quarter and dropped again in the third quarter.

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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.37 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)