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Will Ball Corporation (BLL) Manage to Beat on Q1 Earnings?

Ball Corporation BLL is slated to report first-quarter 2016 results before the opening bell on Apr 28.

In the last quarter, the company posted a positive earnings surprise of 6.67%. Notably, Ball Corporation has delivered an average positive earnings surprise of 1.12% over the trailing four quarters.

Let’s see how things are shaping up for this announcement.


 

Factors at Play

Ball Corporation is poised to benefit in the first quarter with less currency impact. Further, start-up costs will be lower. The company’s various investments to enhance the growth of specialty can and new product portfolio will also drive growth. However, the company expects the first quarter to be relatively soft due to the repricing of its contracts in China and challenging comparisons in the food and household products business.

Earnings Whispers

Our proven model does not conclusively show that Ball Corporation is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below:

Zacks ESP: Ball Corporation has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 69 cents.

Zacks Rank: Ball Corporation carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Emerson Electric Co. EMR has an Earnings ESP of +3.18% and a Zacks Rank #2.

Mobile Mini, Inc. MINI has an Earnings ESP of +3.57% and a Zacks Rank #3.

Eaton Corporation plc ETN has an Earnings ESP of +1.18% and a Zacks Rank #3.

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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
 
BALL CORP (BLL): Free Stock Analysis Report
 
MOBILE MINI INC (MINI): Free Stock Analysis Report
 
EMERSON ELEC CO (EMR): Free Stock Analysis Report
 
EATON CORP PLC (ETN): Free Stock Analysis Report
 
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