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Ball Corp (BLL) to Report Q1 Earnings: What's in the Offing?

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Ball Corporation BLL is scheduled to report first-quarter 2022 results on May 5, before the opening bell.

Q4 Performance

In the last reported quarter, Ball Corp’s earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, reflecting strong beverage-can volumes growth. It has a trailing four-quarter earnings surprise of 3.7%, on average.

Q1 Estimates

The Zacks Consensus Estimate for the first-quarter earnings per share is pegged at 83 cents, suggesting growth of 15.3% from the prior-year period’s levels. The Zacks Consensus Estimate for total sales is pegged at $3.55 billion, indicating a year-over-year improvement of 13.5%.

Factors to Note

Ball Corp provides key aluminum packaging products and services to consumer-oriented end markets, such as food and beverages, household and healthcare. Demand for these products has been robust on the increased at-home consumption. The company has been benefitting from the strong global beverage-can demand as consumers prefer cans over glass and plastic. These factors are likely to have favored the company’s first-quarter performance. The company has been focused on improving its efficiency and reducing costs. These initiatives are anticipated to have boosted the company’s margin in the to-be-reported quarter.

The Beverage packaging, North and Central America segment is likely to have generated sales of $1,510 million during the March-end quarter, calling for a 16.5% year-over-year increase. The segmental operating income is estimated at $168 million compared with the prior-year quarter’s $140 million. Operational efficiency, investment in new can plant capacity expansions and solid demand for beverage cans are likely to have aided the segment during the quarter to be reported.

The Zacks Consensus Estimate for the Beverage packaging, South America segment’s net sales is pegged at $543 million, suggesting growth of 11.5% from the year-ago period’s levels. This reflects the demand for beverage cans and the production commencement of multiple can production lines. The segment’s operating income is pegged at $97 million, suggesting an increase from the prior-year quarter’s $93 million.

The Zacks Consensus Estimate for the Beverage packaging, Europe segment’s sales is at $888 million for the to-be-reported quarter, calling for an improvement of 11.5% from the prior-year quarter’s levels. The segment’s operating income is projected at $108 million, suggesting an improvement of 8% year over year. Increasing demand for sustainable aluminum cans and the company’s investment in incremental capacity in its existing facilities is expected to have contributed to the segment’s performance during the quarter under review.

The Aerospace segment’s contracted backlog remained strong at $2.5 billion as of the end of 2021. Program execution remains at a high level across the business. The segment continues to win and provide mission-critical programs and technologies to the U.S. government, defense, intelligence, reconnaissance and surveillance customers. This is likely to get reflected in the segment’s first-quarter top line. The Zacks Consensus Estimate for the Aerospace segment's revenues is pegged at $478 million for the period in the discussion, indicating a year-over-year improvement of 12.7%. The segment’s operating income is projected at $44.9 million, suggesting year-over-year growth of 28.3%.

High input and labor costs due to supply constraints might have impacted the company’s performance in the quarter. Higher-than-expected start-up costs stemming from capacity-expansion measures are likely to have dented performance. Ball Corp has been importing cans to meet demand until the ramp-up of its new plants, which might have led to higher freight costs. These factors are likely to have impacted its margins during the quarter to be reported.

Ball Corporation Price and EPS Surprise

Ball Corporation Price and EPS Surprise
Ball Corporation Price and EPS Surprise

Ball Corporation price-eps-surprise | Ball Corporation Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Ball Corp this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of a positive surprise. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Ball Corp has an Earnings ESP of -2.72%.

Zacks Rank: Currently, the company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Shares of Ball Corp have declined 13% in the past year compared with the industry's loss of 8.4%.

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Stocks Worth a Look

Here are some stocks worth considering as these have the right combination of elements to post an earnings beat in their upcoming releases:

Cigna Corporation CI has an Earnings ESP of +6.26% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s revenues of $43.5 billion for the first quarter of 2022 indicates year-over-year growth of 6.3%.

The Zacks Consensus Estimate for the company’s earnings for first-quarter 2022 currently is at $5.13, suggesting year-over-year growth of 8.5%. CI’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 6.04%.

Alcon Inc. ALC currently has an Earnings ESP of +10.04% and a Zacks Rank of 2. The Zacks Consensus Estimate for Alcon’s first-quarter 2022 earnings is pegged at 52 cents per share, suggesting a 6.1% growth from the year-ago quarter’s levels.

The Zacks Consensus Estimate for its quarterly revenues is at $2.04 billion, suggesting year-over-year growth of 6.8%. Alcon has a trailing four-quarter earnings surprise of 16.5%, on average.

Western Midstream Partners, LP WES currently has an Earnings ESP of +5.32% and a Zacks Rank #3. The Zacks Consensus Estimate for Western Midstream’s first-quarter 2022 earnings per share is currently pegged at 61 cents, indicating 27% growth from the prior-year quarter’s tally.

The Zacks Consensus Estimate for Western Midstream’s quarterly revenues is pegged at $748 million, which indicates year-over-year growth of 10.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Ball Corporation (BLL) : Free Stock Analysis Report

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