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It has been about a month since the last earnings report for Ball (BALL). Shares have added about 1.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ball due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ball Corp's Earnings Surpass Estimates in Q4, Increase 8% Y/Y
Ball has reported fourth-quarter 2024 adjusted earnings of 84 cents per share, beating the Zacks Consensus Estimate of 81 cents. The bottom line increased 8% year over year.
Ball Corp reported a loss from continuing operations of 1 cent per share compared with earnings from continuing operations of 32 cents per share in the year-ago quarter. On a reported basis, the company’s loss per share was 11 cents (including a loss of 10 cents per share pertaining to discontinued operations) against the prior-year quarter’s earnings of 49 cents.
Total sales were $2.88 billion, a 0.8% dip from $2.90 billion (the figure is exclusive of the company's divested aerospace business) in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.98 billion.
BALL’s Q4 Operational Update
The cost of sales was $2.29 billion in fourth-quarter 2024, down 0.7% from the year-ago quarter. The gross profit totaled $591 million, down from the year-ago quarter’s $599 million. The gross margin was 20.5%, down from the prior-year quarter’s 20.6%.
Selling, general and administrative expenses rose 4.9% year over year to $129 million. Comparable segment operating earnings were $358 million, 0.8% lower than the prior-year quarter’s $361 million. The segment operating margin was 12.4%, flat year over year.
Ball Corp’s Segmental Performances in Q4
The Beverage packaging, North and Central America segment’s revenues decreased 6.5% year over year to $1.29 billion in the fourth quarter. Results have reflected lower volume and price/mix, favorably offset by the contractual pass-through of lower aluminum costs. Operating earnings amounted to $142 million, down 9% year over year.
Sales for the Beverage packaging, EMEA segment were $826 million in the quarter, up 11.8% year over year. The upside was due to a higher year-over-year volume. Operating earnings were $90 million, which marked a 12.5% year-over-year improvement.
The Beverage packaging, South America segment’s revenues were $563 million in the reported quarter, down 8.6% year over year. The segment witnessed lower year-over-year volume and lower price/mix. Operating earnings improved 0.8% to $126 million.