May 6, 2025
(Zack's Commentary)
–
Ball Corporation
BALL has reported first-quarter 2025 adjusted earnings of
76 cents
per share, beating the Zacks Consensus Estimate of
69 cents
. The bottom line improved 12% year over year. The upside was driven by higher volumes across all segments.
Ball Corp
reported earnings from continuing operations of
64 cents
per share compared with
25 cents
in the year-ago quarter.
Total sales were
$3.1 billion
in the reported quarter compared with
$2.9 billion
in the year-ago quarter. The top line beat the Zacks Consensus Estimate of
$2.9 billion
. Global aluminum packaging shipments increased 2.6% year over year. (Find the latest EPS estimates and surprises on
Zacks
Earnings Calendar.)
BALL's Q1 Operational Update
The cost of sales was
$2.49 billion
in first-quarter 2025, up 9.2% from the year-ago quarter. The gross profit totaled
$604 million
, up from the year-ago quarter's
$591 million
. The gross margin was 19.5% compared with 20.6% in the year-ago quarter.
Selling, general and administrative expenses fell 37.1% year over year to
$149 million
. Comparable segment operating earnings were
$360 million
compared with the prior-year quarter's
$332 million
.
Ball Corp's
Q1 Segmental Performances
The Beverage Packaging North and
Central America
segment's sales increased 4.3% year over year to
$1.46 billion
in the first quarter. Results reflect gains from higher volume and price/mix. We predicted sales of
$1.39 billion
. Operating earnings amounted to
$195 million
, up 1.6% year over year. Our estimate for the segment's operating earnings was
$185 million
.
Sales in the Beverage Packaging EMEA segment were
$903 million
in the quarter, up 11.5% year over year. The reported figure surpassed our estimated sales of
$829 million
. The upside was driven by higher year-over-year shipments and price/mix, and increased volumes. Operating earnings were
$96 million
, marking 12.9% year-over-year growth. We projected operating earnings of
$82 million
.
The Beverage Packaging South America segment's sales rose 12.9% year over year to
$544 million
in the reported quarter. The segment witnessed higher volume and price/mix. Our projection for the segment's sales was
$484 million
. Operating earnings rose 25.5% to
$69 million
. The reported figure surpassed our estimate of
$53 million
.
BALL's Cash Flow & Debt Position
The company reported cash and cash equivalents of
$0.45 billion
at the end of first-quarter 2025, down from
$1.72 billion
at the end of the prior-year quarter. Cash used in operating activities amounted to
$0.67 billion
in the first quarter of 2025 compared with the
$1.25 billion
reported last year.
The company's long-term debt increased to
$6.13 billion
at the end of
March 31, 2025
, from
$5.52 billion
at the end of
March 31, 2024
.
BALL Corp Stock's
Price Performance
The company's shares have lost 23.7% in the past year compared with the industry's 6.1% decline.
Image Source: Zacks Investment Research
BALL's Zacks Rank
Ball Corp
currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's
Zacks
#1 Rank (Strong Buy) stocks here .
Performances of
Ball Corp's
Peers in Q1
Silgan Holdings Inc.
SLGN recorded first-quarter adjusted earnings of
82 cents
per share in first-quarter 2025, beating the Zacks Consensus Estimate of
78 cents
. The bottom line increased 19% year over year and was within Silgan's guidance of
74-84 cents
.
SLGN's total sales increased year over year to
$1.47 billion
from the prior-year quarter's
$1.32 billion
. The top line missed the Zacks Consensus Estimate by 0.29%.
Crown Holdings, Inc.
CCK posted first-quarter 2025 adjusted earnings per share of
$1.67
, beating the Zacks Consensus Estimate of
$1.22
by a solid margin of 37%. The bottom line marked a 64% year-over-year surge.
Crown Holdings'
growth was driven by higher beverage can shipments across the
Americas
and
Europe
, enhanced manufacturing efficiencies, and cost savings from the company's restructuring initiatives.
Crown Holdings'
net sales in the quarter totaled
$2.89 billion
, surpassing the Zacks Consensus Estimate of
$2.87 billion
. The figure also marked an improvement of 3.7% from the year-ago quarter's
$2.78 billion
. The upside was driven by increased beverage can shipments in the
Americas
and European Beverage. These gains were, however, partially offset by unfavorable foreign currency impacts.
Packaging Corporation of America
PKG reported adjusted earnings per share of
$2.31
in the first quarter of 2025, beating the Zacks Consensus Estimate of
$2.21
. The bottom line increased 34% year over year. The figure was above the company's guidance of
$2.21
.
The upside primarily resulted from higher prices and mix in the Packaging and Paper segments, and volumes in the Packaging segment. Including one-time items, earnings in the reported quarter were
$2.26
per share compared with the prior-year quarter's
$1.63
.
Packaging Corp's
sales in the first quarter rose 8.2% year over year to
$2.141 billion
. The top line surpassed the Zacks Consensus Estimate of
$2.140 billion
.
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