O-I Glass, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a sad week for O-I Glass, Inc. (NYSE:OI), who've watched their investment drop 12% to US$13.09 in the week since the company reported its quarterly result. Revenues of US$1.6b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of US$0.45 an impressive 21% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for O-I Glass

Taking into account the latest results, O-I Glass' eight analysts currently expect revenues in 2024 to be US$6.93b, approximately in line with the last 12 months. Earnings are expected to improve, with O-I Glass forecast to report a statutory profit of US$1.72 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.17b and earnings per share (EPS) of US$2.32 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 9.2% to US$19.33. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic O-I Glass analyst has a price target of US$28.00 per share, while the most pessimistic values it at US$14.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 1.3% growth on an annualised basis. That is in line with its 1.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.9% per year. So it's pretty clear that O-I Glass is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for O-I Glass. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for O-I Glass going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for O-I Glass that you should be aware of.

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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.