Actions of OI glass (NYSE: OI) were up today after the maker of glass bottles and other containers posted better-than-expected results in its fourth quarter earnings report and showed progress in its turnaround efforts.
The stock was up 14.4% as of 2:05 p.m. EST.
Revenue at the company formerly known as Owens-Illinois fell 0.4 percent to $ 1.63 billion, which matches estimates, although the company has gotten wind in stern due to the 2.6% increase in average selling prices, which increased sales by $ 42 million.
Ultimately, adjusted earnings per share came in at $ 0.50, which was high on OI’s previous forecast, but lower than last year’s performance of $ 0.61. Nonetheless, it beat analyst consensus at $ 0.46.
Investors seemed encouraged by the company’s plan for 2020. CEO Andres Lopez said, “As we move into 2020, we are taking bold structural steps to improve OI’s business fundamentals. We optimize the business portfolio and capital structure of the company through acquisitions and disposals of accretive assets. which are not at the heart of our strategy. “
The company also said its MAGMA technology is revolutionizing the industry by enabling rapid expansion of mobile capacity in smaller increments.
Lopez also said the company will see its operational performance and cash flow generation improved next year.
For its outlook for 2020, OI expects earnings per share of $ 2.10 to $ 2.25, down from $ 2.24 in 2019, and said in its outlook that higher average selling prices and a increased capacity would support stable revenue growth of 2%.
Due to IO’s focus on producing beer bottles, investors should also keep an eye on the beer industry. After a difficult year, today’s report seems sufficient to restore investor confidence.
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