Ball Corporation (NYSE:BLL) is one of the world’s leading suppliers of metal packaging to the beverage, food, personal care and household products industries. It also supplies aerospace and other technologies and services to government and commercial customers.
Ball Corporation will gain from Rexam acquisition which will help to simplify and streamline its business and is deliver over $300 million in synergies by the end of 2019. Recently, Ball Corporation entered into an agreement to sell its specialty tin manufacturing facility in Baltimore, MD, to U.S.-based Independent Can Company for around $25 million. This divestiture will help it to focus on maximizing value and generating positive EVA dollars in its core businesses. The deal will also enable the company to better align with its strategic focus on food and aerosol packaging. Meanwhile, it will also benefit from multiple growth capital projects ramping up in the remainder of 2016 and beyond.
Let’s have a quick look at the third-quarter 2016 earnings release of the company.
Estimate Trend & Surprise History
You should note that the earnings estimate revisions for Ball Corporation depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at 92 cents for the first quarter.
Coming to earnings surprise history, Ball Corporation beat the Zacks Consensus Estimate in 3 out of the trailing 4 quarters with an average positive earnings surprise of around 3.51%.
BALL CORP Price and EPS Surprise
BALL CORP Price and EPS Surprise | BALL CORP Quote
Earnings
Ball Corporation delivered adjusted earnings of 96 cents per share in the third-quarter 2016. Earnings beat the Zacks Consensus Estimate of 92 cents.
Revenue
Ball Corporation missed on revenues in the third quarter. Ball Corporation posted revenues of $2,815 million, which fell short of the Zacks Consensus Estimate for revenues of $2,845 million.
Key Stats
Ball Corporation stated that the Rexam acquisition integration is progressing smoothly and its long-term financial goals are well on track. The company expects to deliver approximately $150 million of synergies in 2017 with the full amount of at least $300 million expected by the end of 2019.
Zacks Rank
Currently, Ball Corporation has a Zacks Rank #2 (Buy), but that could change following Ball Corporation’s earnings report which was just released.
Market Reaction
Ball Corporation’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Ball Corporation’s earnings report later!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
BALL CORP (BLL): Free Stock Analysis Report
Original post
Zacks Investment Research