O-I Glass(US:OI) ZACKSยท2024-06-10 16:45Core Viewpoint - O-I Glass (OI) has been experiencing a decline in volumes for eight consecutive quarters, primarily due to inventory destocking, weak consumer demand in certain markets, and elevated macroeconomic pressures [1][7]. Financial Performance - The Zacks Consensus Estimate for O-I Glass's 2024 earnings has been revised downward by 11% in the past 30 days, now projected at $1.67 per share, indicating a 46% year-over-year decline [2]. - O-I Glass reported first-quarter 2024 revenues of $1.59 billion, down 13% from the previous year, attributed to lower volumes and weak consumer demand [12]. - Earnings per share for the first quarter were 45 cents, marking a 65% decline from the year-ago quarter due to lower revenues and higher interest expenses [12]. Volume Trends - The decline in volumes began with a 0.1% dip in Q2 2022, worsening to a 17% drop in Q4 2023 and a 13% decline in Q1 2024 [3][12]. - The company anticipates a slight recovery in volumes for 2024, with sales volume guidance projected to be flat to up in the low-single digits [13]. Market Position - O-I Glass has a market capitalization of $1.85 billion and currently holds a Zacks Rank 5 (Strong Sell) [4]. - The company's shares have lost 43.9% over the past year, compared to a 38.7% decline in the industry [11]. Future Outlook - O-I Glass has increased production curtailment activities to reduce inventory and position itself for a potential market recovery in 2024 [13]. - Adjusted earnings are expected to be in the range of $1.50-$2.00 per share, down from a previous range of $2.25-$2.65 [8].