Ball's Q3 Earnings Surpass Estimates, Increase Year Over Year

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Ball Corporation BALL reported third-quarter 2024 adjusted earnings per share (EPS) of 91 cents, which beat the Zacks Consensus Estimate of 87 cents. The bottom line improved 10% year over year. BALL reported higher volumes in EMEA that offset lower volumes in North and Central America and South America. Despite low volumes, each of its three segments reported year-over-year improvement in profits.

On a reported basis, Ball’s EPS from continuing operations was 63 cents compared with the prior-year quarter’s 42 cents.

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Ball Corp.’s Sales Dip Y/Y

Total sales were $3.08 billion, a 1% dip from $3.11 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 $3.17 billion.

Ball Corporation Price, Consensus and EPS Surprise

Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote

BALL Delivers Y/Y Improvement in Margins

The cost of sales was $2.43 billion, down 3.5% from the year-ago quarter. The gross profit totaled $657 million, up from the year-ago quarter’s $599 million. The gross margin was 21.3%, a 200-basis point expansion from the prior-year quarter’s 19.3%.

Selling, general and administrative expenses rose 7% year over year to $142 million. Comparable segment operating earnings were $409 million, 13.6% higher than the prior-year quarter’s $360 million. Segment operating margin was 13.3% compared with 11.6% in the year-ago quarter.

Ball Corp.’s Segment Performances in Q3

The Beverage Packaging North and Central America segment’s revenues decreased 5.5% year over year to $1.46 billion due to lower volumes and price/mix. We predicted sales of $1.53 billion.

Operating earnings amounted to $203 million, up 3.6% year over year as impact of price/mix was partially offset by lower volumes of 3.1%. Our estimate for the segment's operating earnings was $224.6 million.

Sales in the Beverage Packaging EMEA segment were $950 million, up 5.3% year over year aided by higher volumes. The reported figure surpassed our estimate of $926 million

Operating earnings were $128 million, marking 24.3% year-over-year growth. The improvement was driven by higher volumes. We projected operating earnings of $117 million.

The Beverage Packaging South America segment’s revenues dipped 1% year over year to $484 million as favorable price/mix was offset by lower volumes. The impact of disruptive economic and operating conditions in Argentina led to a decline in volumes. Our projection for the segment’s sales was $514 million. 
Operating earnings rose 28% to $78 million. The reported figure beat our estimate of $63 million.