O-I Glass (NYSE:OI) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

O-I Glass, Inc. (NYSE:OI) is scheduled to report Q3 earnings results after markets close for trading on October 27, 2020.

The company is expected to report earnings of $0.29/share on revenue of $1.556 billion. The consensus earnings per share (EPS) of $0.29/share is based on a poll of 11 analysts and represents a decline in eps of −46.4% over the same quarter last year, when the company reported earnings of $0.54/share.

The revenue forecast of $1.556 billion based on a poll of 10 analysts implies a year-over-year (YoY) decline in revenue of −6.8%. Last year the company reported $1.67 billion in revenue for the quarter.

Expected to report EPS contraction of −46.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,555.89 $1,670.00 −6.8%
EPS $0.29 $0.54 −46.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 2 out of the last 8 tracked quarters, missed 4 quarters, and met expectations 2 quarters.

What are your expectations from O-I Glass, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.03 $0.01 −62.4% Missed
Q1, 2020 $0.40 $0.41 3.1% Beat
Q4, 2019 $0.48 $0.50 4.4% Beat
Q3, 2019 $0.55 $0.54 −1.5% Missed
Q2, 2019 $0.76 $0.69 −9.3% Missed
Q1, 2019 $0.53 $0.51 −4.4% Missed
Q4, 2018 $0.62 $0.61 −2.4% Missed
Q3, 2018 $0.75 $0.75 0% Met

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 9.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $10.69 $11.74 9.8% Increase
April 28, 2020 $7.13 $8.50 19.2% Increase
February 4, 2020 $12.97 $14.86 14.6% Increase
October 28, 2019 $10.70 $8.68 −18.9% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.67, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.67 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

O-I Glass, Inc. is currently trading at $11.27/share, up 2.1% for the day. The company is trading at approximately 72.1% of its 52-week high of $15.64/share. The company’s stock price is down −4.0% since the last earnings report and up 0.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 49.34 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:OI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −2.98 and a forward P/E multiple of 10.60.

O-I Glass, Inc.’s current share price also implies a price-to-book (P/B) multiple of −36.10. The following table summarizes some other key fundamental ratios:

Data as of October 21, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $11.27
P/E Ratio −3.0x
P/E Ratio (Fwd) 10.6x
PEG Ratio 0.0
Total Debt / Total Capital 78.1%
Levered Free Cash Flow $552 million
EV / EBITDA 8.3x

Finbox

O-I Glass, Inc. is a small-cap stock with a market capitalization of $1.769 billion and a total enterprise value of $7.3 billion. The company operates in the Materials sector and the Containers & Packaging industry.

O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific. It produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. The company is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. It offers glass containers in a range of sizes, shapes, and colors. The company sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. O-I Glass, Inc. was founded in 1903 and is headquartered in Perrysburg, Ohio.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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