O-I Glass Tops Earnings Estimates in Q2, Raises '25 EPS Outlook

O-I Glass, Inc. OI reported second-quarter 2025 adjusted earnings per share (EPS) of 53 cents, which beat the Zacks Consensus Estimate of 41 cents. On a year-over-year basis, earnings increased 20%. Including one-time items, O-I Glass reported a loss of 3 cents per share for the quarter against the prior-year quarter’s earnings of 36 cents. This reflected the impacts of the company’s restructuring actions.O-I Glass, Inc. Price, Consensus and EPS Surprise  O-I Glass, Inc. price-consensus-eps-surprise-chart | O-I Glass, Inc. QuoteOI’s Q2 Revenues & Gross Profit Dip  Y/YRevenues were $1.71 billion for the quarter under review, down 1.3% from the year-ago quarter mainly due to lower selling prices and sales volume, partially offset by favorable foreign currency translation. The top line missed the Zacks Consensus Estimate of $1.72 billion. Sales volume (in tons) declined 3% in the quarter.The cost of sales was down 1.3% year over year to $1.41 billion. Gross profit decreased 1.3% year over year to $299 million. The gross margin was 17.5% for the quarter under review, flat year over year. Selling and administrative expenses were down 3.6% year over year to $106 million.Adjusted segment operating profit amounted to $225 million for the reported quarter, down from the prior-year period’s $233 million.O-I Glass’ Segment Performances in Q2Net sales in the Americas segment rose 4.9% year over year to $943 million for the second quarter. Our model estimated the segment’s net sales to be $898 million. Operating profit was up 27.4% year over year to $135 million. The figure beat our estimate of $131 million. Gains from Fit to Win initiatives and 4% improvement in sales volumes were offset by unfavorable currency translation and lower price. Net sales in the Europe segment were $741 million for the reported quarter, down 7.6% year over year. The figure lagged our estimate of $789 million. The segment’s operating profit fell 29.1% year over year to $90 million. Our model had predicted an operating profit of $87 million. The downside was driven by lower net price and lower sales volume.OI’s Cash Flow & Balance Sheet UpdatesO-I Glass had cash and cash equivalents of $487 million at the end of June 30, 2025, down from $734 million at 2024 end. The company generated $155 million of cash in operating activities in the quarter under review compared with the prior-year quarter’s $250 million.The company’s long-term debt was $4.9 billion as of June 30, 2025, up from $4.6 billion as of Dec 31, 2024.O-I Glass’ 2025 OutlookBacked by continued momentum from the Fit to Win program, OI raised its projection for 2025. It expects adjusted earnings of $1.30-$1.55 per share, up from the previously stated $1.20-$1.50. The mid-point of the updated guidance range indicates year-over-year growth of 76% from the earnings per share of 81 cents reported in 2024.OI expects the 2025 free cash flow to be $150-$200 million, whereas it reported an outflow of $128 million in 2024.OI Stock’s Price PerformanceShares of the company have gained 8.3% over the past year against the industry’s fall of 11.2%.  Image Source: Zacks Investment Research O-I Glass’ Zacks RankOI currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performances of Other Packaging StocksPackaging Corporation of America PKG reported adjusted EPS of $2.48 in the second quarter of 2025, beating the Zacks Consensus Estimate of $2.44. The reported figure was higher than PKG’s guidance of $2.41 in the quarter under review. Moreover, the bottom line increased 13% year over year. The upside was driven by higher prices and mix in both segments. Packaging Corp’s sales in the second quarter grew 4.6% year over year to $2.17 billion. The top line beat the Zacks Consensus Estimate of $2.16 billion.Packaging Stocks Awaiting ResultsBall Corporation BALL is scheduled to release second-quarter 2025 results on August 5. The Zacks Consensus Estimate for BALL’s second-quarter 2025 earnings is pegged at 87 cents per share, suggesting year-over-year growth of 17.6%.The Zacks Consensus Estimate for Ball Corp’s top line is pegged at $3.15 billion, indicating growth of 6.6% from the prior-year actual. Ball Corp has a trailing four-quarter average surprise of 4.9%.AptarGroup, Inc. ATR is scheduled to release second-quarter 2025 results on July 31. The Zacks Consensus Estimate for AptarGroup’s second-quarter 2025 earnings is pegged at $1.58 per share, suggesting year-over-year growth of 15.3%. The Zacks Consensus Estimate for the company’s top line is pegged at $946.1 million, indicating growth of 3.9% from the prior-year actual. ATR has a trailing four-quarter average surprise of 7.3%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report O-I Glass, Inc. (OI): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Ball Corporation (BALL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks