Owens-Illinois Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Owens-Illinois (NYSE:OI) will unveil its latest earnings on Wednesday, July 25, 2012. Owens-Illinois manufactures glass containers primarily for the food and beverage industries in Europe, North America, South America, and Asia Pacific.

Owens-Illinois Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 76 cents per share, a rise of 28.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 81 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 78 cents during the last month. For the year, analysts are projecting net income of $2.78 per share, a rise of 17.3% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 73 cents per share versus a mean estimate of net income of 66 cents per share.

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A Look Back: In the first quarter, profit rose 68.1% to $121 million (72 cents a share) from $72 million (44 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 1.2% to $1.74 billion from $1.72 billion.

Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price fell $3.79 (-15.9%), from $23.84 to $20.05. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 4, 2012, when shares rose for five straight days, increasing 14.7% (+$2.66) over that span. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 12.2% (-$2.70) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 2% in revenue from the year-earlier quarter to $1.92 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.5% in the second quarter of the last fiscal year, 6.9% in the third quarter of the last fiscal year and 13.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.35 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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