Ball Corp Q3 earnings top estimates, revenue falls short

WESTMINSTER, Colorado - Ball Corporation (NYSE: NYSE:BALL ) reported better-than-expected third quarter earnings on Thursday, though revenue fell short of analyst estimates as volumes declined in some regions. BALL shares were trading flat premarket following the announcement.

The aluminum packaging maker posted adjusted earnings per share of $0.91, exceeding the consensus forecast of $0.86. Revenue came in at $3.08 billion, below expectations of $3.13 billion.

Ball's North and Central America beverage packaging segment saw sales decline 5.5% YoY to $1.46 billion, with volumes down 3.1%. The company cited continued economic pressure on consumers impacting demand.

In Europe, Middle East and Africa, beverage packaging sales rose 5.3% to $950 million as volumes increased 6.7%. Ball noted ongoing packaging legislation in certain countries is driving a shift to aluminum cans.

South America beverage packaging revenue dipped 1% to $484 million, with volumes plunging 10% due to challenging economic conditions in Argentina and supply constraints in Brazil.

"Our company is performing well and on track to deliver or exceed against our stated comparable earnings growth goal," said CFO Howard Yu. He added Ball remains positioned to achieve mid-single digit plus comparable EPS growth in 2024.

CEO Daniel Fisher said the company is focused on "executing our enterprise-wide strategy with purpose and pace to advance aluminum packaging and to consistently deliver high-quality results, products and returns."

Ball expects to return over $1.6 billion to shareholders in 2024 through share repurchases and dividends. The company aims to deliver comparable EPS growth greater than 10% annually in 2025 and beyond.

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Source: Investing.com