Ball Corp (BALL) to Report Q1 Earnings: What's in Store?

Core Viewpoint - Ball Corporation is expected to report first-quarter 2024 results on April 26, with anticipated earnings per share of 56 cents, reflecting an 18.9% decrease year-over-year, and total sales estimated at $3.26 billion, indicating a 6.4% decline from the previous year [1][3]. Q4 Performance - In the last reported quarter, Ball Corporation's earnings increased year-over-year and exceeded the Zacks Consensus Estimate, while total revenue fell year-over-year and missed the estimate. The company surpassed consensus estimates in three of the last four quarters, with an average surprise of 11.7% [2]. Q1 Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is 56 cents, down 18.9% from the prior year. Total sales are estimated at $3.26 billion, a decline of 6.4% year-over-year [3]. Factors to Note - The company has been experiencing weaker demand due to muted customer spending amid higher retail prices, particularly in the U.S. High input and labor costs from supply constraints are expected to impact performance. However, efforts to improve efficiency and reduce costs may help mitigate these effects [4]. - The Beverage Packaging segment in North and Central America is projected to have net sales of $1.36 billion, a 9.8% year-over-year decline, with operating income estimated at $123 million, down 32.7% [4]. - The Beverage Packaging segment in Europe is expected to report sales of $860 million, a 3% drop, with operating income projected at $51 million, reflecting a 30% year-over-year decline [5]. - The Beverage Packaging segment in South America is estimated to have net sales of $455 million, indicating 1% growth, but operating income is expected to decline by 35.7% to $32 million [5]. Recent Developments - On February 16, 2024, Ball Corporation completed the sale of its aerospace business for $5.6 billion to BAE Systems, Inc. Approximately $2 billion of the after-tax proceeds will be used to reduce net debt, with another $2 billion allocated for share repurchases, while the remaining funds will strengthen the balance sheet [6]. Earnings Prediction - The model predicts an earnings beat for Ball Corporation, supported by a positive Earnings ESP of +1.35% and a Zacks Rank of 3 (Hold) [7][8]. Price Performance - Ball Corporation's shares have increased by 26% over the past year, outperforming the industry growth of 11.3% [8].