NYSE$BALL

Ball Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Second quarter results were reported with comparable earnings per diluted share growth.

Ball Corporation reported second quarter U.S. GAAP earnings per diluted share of 28 cents, and comparable earnings per diluted share of 65 cents. The company is leveraging growth investments and global plant network to meet strong demand for aluminum beverage cans. Aerospace contracted backlog of $2.1 billion.

  • Second quarter U.S. GAAP earnings per diluted share of 28 cents vs. 58 cents in 2019
  • Second quarter comparable earnings per diluted share of 65 cents vs. 64 cents in 2019
  • Leveraging growth investments and global plant network to meet strong demand for aluminum beverage cans
  • Aerospace contracted backlog of $2.1 billion; won-not-booked backlog increased 10 percent to $5.3 billion

Headline financials

Total Revenue

$2.8B

Previous: $3.02B-7.2%
EPS (adj)

$0.29

Previous: $0.59-50.8%
Capital Expenditures

-$447M

Previous: -$275M-62.5%
Free Cash Flow

-$355M

Previous: -$78M-355.1%
Net Income

$92M

Previous: $197M-53.3%
Operating Income

$178M

Previous: $307M-42.0%
Gross Profit

-$2.23B

Previous: -$2.43B+8.1%
Cash & Equivalents

$643M

Previous: $764M-15.8%
Total Assets

$16.6B

Previous: $17.1B-2.9%

Revenue & EPS history

Ball · Revenue · Quarterly

$2.8B

Q2 2020-7.2%vs Q2 2019

Revenue by segment

Ball · $2.36B total across 4 segments · Q2 2020

  • Beverage Pkg NCA
    $1.27B-1.5%
  • Beverage Pkg EMEA
    $699M-9.0%
  • Beverage Pkg South Am
    $329M-12.7%
  • Other
    $68M-67.1%

Forward guidance

The company expects to grow earnings per diluted share this year while returning capital to shareholders. Beyond 2020, the company looks forward to continuing to grow EVA dollars on an even larger capital base and achieving long-term diluted earnings per share growth goal of 10 to 15 percent.

Tailwinds

  • Company continues to operate from a position of strength.
  • Ample liquidity and cash flow continue to bolster our ability to accelerate growth investments while continuing to return value to shareholders.
  • Products and operations have proven their resiliency by exiting the second quarter with notable momentum across all of our operations.
  • Exciting growth trajectory in North American beverage business.
  • Foresee 2020 capital expenditures exceeding $900 million and additional EVA-enhancing opportunities in 2021 and beyond.

Headwinds

  • Company faced many challenges on both a human and operational level.
  • Lingering challenges are likely.
  • Foreign exchange losses on deferred tax balances in Brazil following depreciation of the Brazilian real against the U.S. dollar
  • Early-quarter sharp volume declines in South America aluminum beverage
  • Aerospace supply chain issue impacting segment results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+0.8%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+12.1%

Q1 2023

Best reaction

-22.6%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%-3.9%-14.3%
Q4 2025+8.0%+17.3%+11.5%
Q3 2025+1.6%+4.0%+3.7%
Q1 2025-0.4%+0.5%+3.2%
Q4 2024-6.9%-9.4%-6.3%
Q3 2024-8.1%-6.6%-3.2%
Q2 2024+1.5%-0.8%-0.0%
Q1 2024+8.1%+4.3%+5.2%
Q4 2023+7.3%+3.2%+15.9%
Q3 2023+7.7%+5.4%+18.5%
Q2 2023+1.3%-1.4%-3.8%
Q1 2023+12.1%+9.1%+4.2%
Q4 2022+0.9%-1.4%-2.3%
Q3 2022+6.3%+5.6%+16.6%
Q2 2022-22.6%-24.6%-23.3%
Q1 2022-13.6%-17.0%-11.6%
Q4 2021-1.0%-1.3%+1.3%
Q3 2021-3.9%-3.0%-0.9%
Q2 2021+7.9%+12.4%+23.2%
Q1 2021+2.1%+2.8%+10.8%
Q4 2020+0.2%-2.3%-9.9%
Q3 2020+3.6%+0.9%+0.1%
Q2 2020+0.7%-1.5%+9.9%
Q1 2020-2.8%-5.8%-0.6%
Q4 2019-1.8%-2.1%-29.7%
Q3 2019-4.9%-4.7%-5.6%
Q2 2019-2.0%+0.7%+7.6%
Q1 2019+0.9%+0.4%+3.6%
Q4 2018+0.7%+1.9%+6.4%
Q3 2018-0.4%+2.6%+3.1%
Q2 2018+2.3%+2.3%+3.3%
Q1 2018-2.1%+1.4%+1.0%
Q4 2017-1.4%+1.5%-0.6%
Q3 2017-1.7%-4.2%-2.3%
Q2 2017-2.5%-1.1%-2.0%
Q1 2017-0.4%-1.3%+4.4%
Q4 2016-1.6%-3.6%-1.0%
Q3 2016-0.0%-3.4%-3.2%
Q2 2016+0.2%-0.4%-3.4%
Q1 2016+1.0%
Q4 2015+3.0%
Q3 2015+4.3%
Q2 2015-3.2%
Q1 2015-0.8%
Q4 2014-0.1%
Q3 2014-0.8%
Q2 2014+0.9%
Q1 2014+2.0%
Q4 2013-0.4%
Q3 2013+0.1%
Q2 2013-3.4%
Q1 2013-0.6%
Q4 2012-1.4%
Q3 2012+0.4%
Q2 2012+4.2%
Q1 2012+0.5%
Q4 2011-0.9%
Q3 2011+1.8%
Q1 2010+1.8%
Q2 2011+3.9%
Q1 2011+0.9%
Q4 2010-1.3%
Q4 2008-1.3%
Q3 2010+2.5%
Q3 2009+2.5%
Q2 2009+0.2%
Q2 2010+0.2%
Q4 2009+0.2%

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