Owens-Illinois (OI) Q2 Earnings: Will The Stock Disappoint?
Zacks Investment Research | Jul 25, 2016 05:31AM ET
Manufacturer of glass containers, Owens-Illinois, Inc. (NYSE:OI) is scheduled to report second-quarter 2016 results on Jul 27, after the closing bell. In the last-reported quarter, the company reported a year over year increase both in earnings and sales. Let’s see how things are shaping up for this quarter.
Factors to Consider
Owens-Illinois guided second-quarter 2016 adjusted earnings per share in the range of 60–65 cents, which is modestly above the adjusted EPS reported in the year-ago period. The company expects second-quarter results to be lot like the first quarter, driven by acquisitions along with solid legacy business performance.
In the second quarter, Owens-Illinois expects to see less adverse effects from hedging program and benefit from its joint venture with Constellation Brands (NYSE:STZ), which will soon be ramping up its second furnace.
However, political uncertainties continue to aggravate macroeconomic-driven weakness in Brazil. Moreover, price increases may not completely cover the persistently high costs of inflation linked to the strong U.S. dollar. In Europe, heightened competitive activity has been pushing down selling prices. These factors will hurt Owens-Illinois’ results.
Earnings Whispers
Our proven model does not conclusively show that Owens-Illinois will beat estimates this quarter. That is because a stock needs to have both a positive
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