Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]

O-I Glass (OI) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of $0.03. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -233.33%. A quarter ago, it was expected that this glass container manufacturer would post earnings of $0.42 per share when it actually produced earnings of $0.44, delivering a surprise of 4.76%. Over the last four quarters, the compan ...

PERRYSBURG, Ohio, Oct. 29, 2024 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE Rapidly Implementing Fit To Win Priorities to Drive Improved Performance in 2025 and Beyond Business Returned to Modest Sales Volume Growth, Despite Sluggish Market Conditions Updating 2024 Business Outlook Amid Continued Muted Demand and Consumer Uncertainty O-I Glass, Inc. ("O-I") (NYSE: OI) today reported financial results for the third quarter ended September 30, 2024. | --- | --- | --- | --- | --- | |------------|---------------- ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of ...

PERRYSBURG, Ohio , Oct. 02, 2024 (GLOBE NEWSWIRE) -- O-I Glass, Inc. (NYSE: OI) has scheduled its third quarter 2024 conference call and webcast for Wednesday, October 30, 2024, at 8 a.m. EDT. The Company's news release for the third quarter 2024 earnings will be issued after the market closes on Tuesday, October 29. What: O-I Conference Call and Webcast Earnings presentation materials will also be posted on the O-I website, www.o-i.com/investors, when the earnings news release is issued. When: Wednesday, O ...

Core Viewpoint - O-I Glass reported a significant decline in earnings and revenues for Q2 2024, leading to a lowered outlook for the remainder of the year, reflecting weak demand and operational challenges [2][8]. Financial Performance - Adjusted EPS for Q2 2024 was 44 cents, beating the Zacks Consensus Estimate of 42 cents, but down 50% year-over-year [2] - Revenues for the quarter were $1.73 billion, an 8.5% decrease from the previous year, missing the Zacks Consensus Estimate of $1.75 billion [3] - The cost of sales decreased by 3.3% year-over-year to $1.43 billion, while gross profit fell 27.2% to $303 million, resulting in a gross margin of 17.5% compared to 22% in the prior year [4] Segment Performance - In the Americas segment, net sales dropped 9.7% year-over-year to $899 million, with operating profit down 15.9% to $106 million [5] - The Europe segment reported net sales of $802 million, a 7.1% decline year-over-year, with operating profit falling 36.5% to $127 million [6] Cash Flow and Debt - Cash and cash equivalents decreased to $671 million as of June 30, 2024, down from $913 million at the end of 2023 [7] - Operating cash flow for the quarter was $250 million, compared to $291 million in the prior year, while long-term debt was reduced to $4.65 billion [7] Outlook - O-I Glass has lowered its 2024 adjusted earnings projection to $1.00-$1.25 per share from $1.50-$2.00, citing weak demand and planned production cuts [8] - Sales volume is expected to remain flat or decline in the low-single digits, with free cash flow projections reduced to $50-$100 million [8] Estimate Trends - Consensus estimates have trended downward, with a significant shift of -93.08% noted in the past month [9] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [11] VGM Scores - O-I Glass has a Growth Score of B, a Momentum Score of F, and a Value Score of A, placing it in the top 20% for value investment strategy [10]

O-I Glass, Inc. (OI) reported second-quarter 2024 adjusted earnings per share (EPS) of 44 cents, which beat the Zacks Consensus Estimate of 42 cents. On a year-over-year basis, earnings fell 50%, reflecting lower demand. Including one-time items, O-I Glass reported an EPS of 36 cents for the quarter compared with 69 cents in the prior-year quarter. Operational Update Revenues were $1.73 billion for the quarter under review, down 8.5% from the year-ago quarter mainly due to lower average selling prices, unfa ...

ADVANCING NEW CEO PRIORITIES AS MARKETS GRADUALLY IMPROVE • Increase focus on installing MAGMA Gen 1 to heritage furnaces at end of life where applicable – Accelerate generating economic profit – Add on/off flexibility and efficiency to heritage network • Gen 2 optimization at Bowling Green • Gen 3 consideration as part of Horizon 3 priorities As part of our journey toward zero injuries, we are committed to a 50% improvement of our Total Recordable Incident Rate (TRIR) by 2030. (1) An economic profit (EP) m ...

Over the last four quarters, the company has surpassed consensus EPS estimates four times. O-I Glass shares have lost about 30.1% since the beginning of the year versus the S&P 500's gain of 14.5%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research sho ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) O-I Glass reported a decline in Q2 2024 financial performance, with lower sales and earnings, while introducing a new value creation program Q2 2024 Key Financial Metrics (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.7B | $1.9B | ▼ | | Net Earnings per Share (Diluted) | $0.36 | $0.69 | ▼ 47.8% | | Adjusted Earnings per Share (Non-GAAP) | $0.44 | $0.88 | ▼ 50.0% | | Segment Operating Profit (Non-GAAP) | $233M | $326M | ▼ 28.5% | - Net sales decline was attributed to **2% lower average selling prices** and a **4.5% decrease in sales volume** (in tons)[33](index=33&type=chunk) - New CEO Gordon Hardie introduced the **"Fit To Win" program**, which is aimed at increasing the company's value and is expected to **significantly boost performance over the next three years**[29](index=29&type=chunk) - Management observed **good sequential improvement** in year-over-year shipments as destocking across the value chain moderated and anticipates **year-over-year sales volume growth starting in the second half of 2024**[55](index=55&type=chunk) [2024 Business Outlook](index=2&type=section&id=2024%20Business%20Outlook) O-I Glass revised its full-year 2024 guidance downwards, anticipating lower sales and earnings, and plans furnace closures Full-Year 2024 Guidance Update | Metric | Current Guidance | Prior Guidance | | :--- | :--- | :--- | | Sales Volume Growth (in Tons) | Flat to ▼ LSD | Flat to ▲ LSD | | Adjusted Earnings Per Share (EPS) | $1.00 - $1.25 | $1.50 - $2.00 | | Free Cash Flow | $50M - $100M | $100M - $150M | - The company plans **additional temporary production curtailment**, concentrated in Q3, to **reduce inventory levels** to be consistent with 2022's historically low levels[36](index=36&type=chunk)[59](index=59&type=chunk) - As part of the "Fit to Win" initiative, O-I anticipates **at least six indefinite or permanent furnace closures** over the next three quarters to **reduce redundant capacity** and optimize its network[59](index=59&type=chunk) - The full-year adjusted effective tax rate outlook has been **increased to approximately 33% to 35%**, up from the prior outlook of 30% to 33%[37](index=37&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents O-I Glass's condensed consolidated income statements, balance sheets, and cash flow statements for the reporting periods [Condensed Consolidated Results of Operations (Income Statement)](index=6&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) O-I's Q2 2024 net sales decreased to **$1.73 billion**, with gross profit and net earnings also declining significantly year-over-year Consolidated Results of Operations (in millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,729 | $1,890 | $3,322 | $3,721 | | Gross Profit | $303 | $416 | $621 | $900 | | Earnings Before Income Taxes | $104 | $154 | $221 | $424 | | Net Earnings Attributable to the Company | $57 | $110 | $129 | $316 | Earnings Per Share (Diluted) | Period | 2024 | 2023 | | :--- | :--- | :--- | | Three Months Ended June 30 | $0.36 | $0.69 | | Six Months Ended June 30 | $0.81 | $1.98 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, O-I's total assets and share owners' equity decreased, while total liabilities saw a slight reduction Key Balance Sheet Items (in millions) | Account | June 30, 2024 | Dec 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | :--- | | Total Current Assets | $2,819 | $2,884 | $3,035 | | Total Assets | $9,334 | $9,669 | $9,911 | | Total Current Liabilities | $2,234 | $2,346 | $2,131 | | Long-term Debt | $4,648 | $4,698 | $4,778 | | Share Owners' Equity | $1,631 | $1,744 | $2,143 | [Condensed Consolidated Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Cash%20Flows) Cash utilized in operating activities for the first six months of 2024 was **$20 million**, a significant decline from the prior year Cash Flow Summary (in millions) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Cash provided by (utilized in) operating activities | $(20) | $98 | | Cash utilized in investing activities | $(380) | $(266) | | Cash provided by financing activities | $180 | $132 | | Change in cash | $(242) | $(19) | | Cash at end of period | $671 | $754 | - For the first six months of 2024, the company's use of factoring programs **increased cash provided by operating activities by $90 million**, compared to a **$21 million** increase in the same period of 2023[47](index=47&type=chunk) [Segment Performance](index=9&type=section&id=Segment%20Performance) Both Americas and Europe segments saw Q2 2024 operating profit declines due to lower sales, prices, and higher curtailment costs Segment Performance - Q2 2024 vs Q2 2023 (in millions) | Segment | Net Sales Q2 2024 | Net Sales Q2 2023 | Operating Profit Q2 2024 | Operating Profit Q2 2023 | | :--- | :--- | :--- | :--- | :--- | | Americas | $899 | $996 | $106 | $126 | | Europe | $802 | $863 | $127 | $200 | | **Total** | **$1,701** | **$1,859** | **$233** | **$326** | - Americas' profit decline was driven by **8.5% lower sales volume**, with **operating costs increasing** as benefits from margin initiatives were offset by production curtailment[56](index=56&type=chunk) - Europe's profit decline was mostly due to **lower net price**, while sales volume was flat. **Operating costs were higher** due to elevated temporary production curtailment[56](index=56&type=chunk) Change in Net Sales from 2023 to 2024 (Six Months Ended June 30, in millions) | Reconciling Item | Americas | Europe | Total | | :--- | :--- | :--- | :--- | | **Net Sales 2023** | **$1,996** | **$1,662** | **$3,658** | | Price | $19 | $(72) | $(53) | | Sales volume & mix | $(296) | $(79) | $(375) | | **Net Sales 2024** | **$1,753** | **$1,511** | **$3,264** | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles non-GAAP financial measures, such as adjusted earnings, free cash flow, and adjusted effective tax rate, to their GAAP equivalents [Reconciliation for Adjusted Earnings](index=11&type=section&id=Reconciliation%20for%20Adjusted%20Earnings) Q2 2024 adjusted earnings (non-GAAP) were **$69 million**, or **$0.44** per diluted share, a significant decrease from Q2 2023 Adjusted Earnings Reconciliation - Q2 2024 vs Q2 2023 (in millions, except per share) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net earnings attributable to the Company (GAAP) | $57 | $110 | | Total adjusting items | $12 | $30 | | **Adjusted earnings (non-GAAP)** | **$69** | **$140** | | Net earnings per share (diluted, GAAP) | $0.36 | $0.69 | | **Adjusted earnings per share (non-GAAP)** | **$0.44** | **$0.88** | [Reconciliation to Free Cash Flow](index=12&type=section&id=Reconciliation%20to%20Free%20Cash%20Flow) O-I Glass lowered its full-year 2024 free cash flow forecast to **$50 million - $100 million**, reflecting a reduced operating cash outlook Full-Year 2024 Free Cash Flow Forecast (in millions) | Metric | Current Forecast | Previous Forecast | | :--- | :--- | :--- | | Cash provided by operating activities | $625 to $650 | $675 to $700 | | Cash payments for property, plant and equipment | $(550) to $(575) | $(550) to $(575) | | **Free cash flow (non-GAAP)** | **$50 to $100** | **$100 to $150** | [Reconciliation to Adjusted Effective Tax Rate](index=12&type=section&id=Reconciliation%20to%20Adjusted%20Effective%20Tax%20Rate) The adjusted effective tax rate for Q2 2024 significantly increased to **36.2%** due to a shift in the regional mix of earnings Effective Tax Rate Reconciliation - Q2 2024 vs Q2 2023 | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Effective Tax Rate (GAAP) | 40.4% | 26.6% | | **Adjusted Effective Tax Rate (non-GAAP)** | **36.2%** | **25.9%** | [Other Information](index=3&type=section&id=Other%20Information) This section provides corporate background, defines non-GAAP measures, and outlines risks associated with forward-looking statements [About O-I Glass](index=3&type=section&id=About%20O-I%20Glass) O-I Glass is a **leading global manufacturer** of glass packaging, with **$7.1 billion** in 2023 net sales and operations across **19 countries** - O-I is a **leading global producer** of glass bottles and jars, with approximately **23,000 employees**, **68 plants in 19 countries**, and achieved **net sales of $7.1 billion in 2023**[7](index=7&type=chunk) [Non-GAAP Financial Measures & Forward-Looking Statements](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Forward-Looking%20Statements) Management uses **non-GAAP measures** for **performance assessment**, while forward-looking statements face risks including **economic conditions** and **supply chain disruptions** - Management uses **non-GAAP measures** like adjusted earnings, adjusted EPS, free cash flow, and segment operating profit for **performance assessment**, as they exclude items not reflective of principal business operations[39](index=39&type=chunk)[40](index=40&type=chunk) - Forward-looking statements are subject to a **variety of risks**, including **economic conditions**, **raw material costs**, **competitive pressures**, changes in consumer preferences, **supply chain disruptions**, and risks related to the **MAGMA program**[10](index=10&type=chunk)[11](index=11&type=chunk)[65](index=65&type=chunk)