Ball Corp's Q3 Earnings Surpass Expectations, But Revenue Falls Short

WESTMINSTER, Colorado - Ball Corporation (NYSE: BALL) announced third-quarter earnings that exceeded expectations on Thursday, but revenue fell short of analyst forecasts due to volume declines in some regions. BALL shares remained flat in pre-market trading following the announcement.

The aluminum packaging manufacturer reported adjusted earnings of $0.91 per share, surpassing the consensus estimate of $0.86. Revenue came in at $3.08 billion, below the expected $3.13 billion.

Sales in Ball's North and Central America beverage packaging segment decreased by 5.5% year-over-year to $1.46 billion, driven by a 3.1% decline in volumes. The company noted that ongoing economic pressures on consumers have impacted demand.

In Europe, the Middle East, and Africa, beverage packaging sales increased by 5.3% to $950 million, buoyed by a 6.7% rise in volumes. Ball indicated that ongoing packaging regulations in some countries have encouraged the transition to aluminum cans.

Beverage packaging revenue in South America decreased by 1% to $484 million due to a 10% drop in volumes resulting from challenging economic conditions in Argentina and supply constraints in Brazil.

CFO Howard Yu stated, "Our company is performing well and on track to meet or exceed our stated comparable earnings growth target." Yu also added that Ball is well-positioned to achieve mid-single-digit-plus comparable earnings per share growth in 2024.

CEO Daniel Fisher mentioned that the company is focused on implementing its strategy across the organization with the aim of advancing aluminum packaging and consistently delivering high-quality results, products, and returns.

Ball expects to provide over $1.6 billion in returns to shareholders through share repurchases and dividends in 2024. The company aims to achieve annual comparable earnings per share growth of over 10% in 2025 and beyond.