WESTMINSTER, Colo. – Ball Corporation (NYSE:) announced its first-quarter financial results, surpassing analyst expectations for adjusted earnings per share (EPS) but falling short on revenue.
The company reported an adjusted EPS of $0.68, outperforming the consensus estimate of $0.56. However, quarterly revenue was $2.87 billion, not meeting the anticipated $3.26 billion.
Despite the revenue shortfall, Ball Corp ‘s stock price experienced a modest increase of 1.59%, indicating a positive market response to the earnings beat.
Ball Corp’s first-quarter performance showcased a 3.7% increase in global beverage can shipments, contributing to the EPS beat. However, the revenue dip from $2.98 billion in the same quarter last year to $2.87 billion this year was notable. The company attributed the strong EPS results to effective cost management and operational efficiencies, as well as the immediate financial benefits from the aerospace business sale completed on February 16, 2024.
Daniel W. Fisher, chairman and CEO of Ball Corp, commented on the quarter’s results, stating, “We delivered strong first-quarter results. Following the successful sale of the aerospace business in mid-February, we have executed on our plans to immediately deleverage, initiate a large multi-year share repurchase program and position the company to enable our purpose of advancing the greater use of sustainable aluminum packaging.”
The company’s focus on sustainable aluminum packaging and innovation is expected to drive long-term shareholder value creation. Ball Corp also highlighted its significant deleveraging and the return of $245 million to shareholders through share repurchases and dividends in the first quarter.
Looking ahead, Ball Corp’s management remains optimistic. Howard Yu, executive vice president and CFO, outlined the company’s financial strategy, saying, “Throughout the remainder of the year, our strong cash flow and cash on hand will support prudent business investments, pay quarterly taxes due on the aerospace sale totaling approximately $1.0 billion, and expand share repurchases to in the range of $1.3 billion by year end.”
Ball Corp’s strategic actions and enterprise-wide strategy are designed to enhance its position in the aluminum packaging market and deliver consistent, high-quality results. The company is set to continue its focus on growth, strong free cash flow generation, and shareholder returns, aiming to exceed $1.5 billion in share repurchases and dividends.
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