Owens-Illinois Earnings on Deck

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S&P 500 (NYSE:SPY) component Owens-Illinois (NYSE:OI) will unveil its latest earnings on Wednesday, October 24, 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 net income of 66 cents per share, a decline of 21.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 79 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 67 cents during the last month. For the year, analysts are projecting profit of $2.62 per share, a rise of 10.5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 81 cents per share against a mean estimate of profit of 76 cents per share.

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A Look Back: In the second quarter, profit rose 82.2% to $133 million (80 cents a share) from $73 million (43 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 9.9% to $1.77 billion from $1.96 billion.

Stock Price Performance: Between August 22, 2012 and October 18, 2012, the stock price had risen $2.03 (10.9%), from $18.57 to $20.60. The stock price saw one of its best stretches over the last year between August 14, 2012 and August 20, 2012, when shares rose for five straight days, increasing 3.2% (+58 cents) over that span. It saw one of its worst periods between August 20, 2012 and September 4, 2012 when shares fell for 11 straight days, dropping 9.5% (-$1.79) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 5.9% in revenue from the year-earlier quarter to $1.75 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 6.9% in the third quarter of the last fiscal year, 13.7% in the fourth quarter of the last fiscal year and 1.2%in the first quarter before dropping in the second 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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