Stock Analysis

Ball Corporation (NYSE:BALL) Analysts Just Slashed This Year's Revenue Estimates By 14%

Published
NYSE:BALL
Source: Shutterstock

Market forces rained on the parade of Ball Corporation (NYSE:BALL) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from ten analysts covering Ball is for revenues of US$12b in 2024, implying a considerable 11% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$15b in 2024. It looks like forecasts have become a fair bit less optimistic on Ball, given the substantial drop in revenue estimates.

Check out our latest analysis for Ball

earnings-and-revenue-growth
NYSE:BALL Earnings and Revenue Growth February 21st 2024

We'd point out that there was no major changes to their price target of US$62.49, suggesting the latest estimates were not enough to shift their view on the value of the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 11% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 6.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.6% annually for the foreseeable future. It's pretty clear that Ball's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Ball this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Ball after today.

Worse, Ball is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Valuation is complex, but we're helping make it simple.

Find out whether Ball is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.