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Ball (NYSE:BALL) Misses Q4 Revenue Estimates

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Ball (NYSE:BALL) Misses Q4 Revenue Estimates

Packaging manufacturer Ball (NYSE:BLL) missed Wall Street’s revenue expectations in Q4 CY2024, with sales falling 15.4% year on year to $2.88 billion. Its non-GAAP profit of $0.84 per share was 3.7% above analysts’ consensus estimates.

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Ball (BALL) Q4 CY2024 Highlights:

  • Revenue: $2.88 billion vs analyst estimates of $2.94 billion (15.4% year-on-year decline, 1.9% miss)

  • Adjusted EPS: $0.84 vs analyst estimates of $0.81 (3.7% beat)

  • Operating Margin: 16%, up from 8.8% in the same quarter last year

  • Free Cash Flow Margin: 13.6%, down from 15.3% in the same quarter last year

  • Market Capitalization: $16.62 billion

"We delivered strong full-year and fourth quarter results and returned $1.96 billion to shareholders in 2024. Leveraging our strong financial position and leaner operating model, the company was able to deliver on its 2024 goals and remains uniquely positioned to enable our purpose of advancing the greater use of sustainable aluminum packaging, despite the current end consumer environment in certain geographies. We continue to complement our purpose by unlocking additional manufacturing efficiencies, driving innovation and sustainability on a global scale, managing our costs and enabling consistent delivery of high-quality, long-term shareholder value creation," said Daniel W. Fisher, chairman and chief executive officer.

Company Overview

Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Industrial Packaging

Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Ball struggled to consistently increase demand as its $11.8 billion of sales for the trailing 12 months was close to its revenue five years ago. This fell short of our benchmarks and is a sign of poor business quality.