Owens-Illinois Consensus At $0.51, Goldman Sachs Reports

Owens-Illinois, Inc. OI reported 3Q2010 EPS of $0.90 (ex. items), “ahead of our and consensus forecasts of $0.84 and $0.87, respectively,” Goldman Sachs reports. “The upside to our forecasts was driven by stronger operating margins, as revenues were 3.3% below our estimates,” Goldman Sachs writes. “Looking ahead to 4Q2010, OI expects total glass volumes to be flat (+/-2%) with emerging markets remaining strong but mature markets still challenging until beer consumption improves. OI expects stable prices sequentially.” Goldman Sachs added that OI expects the actions by the Venezuela government to seize the company's assets in Venezuela to negatively impact 4Q2010 EPS. “Based on OI's 3Q2010 slide presentation, we believe OI is guiding to flat yoy EPS growth (excluding impact of Venezuela). OI earned $0.49 in 4Q2009; current consensus 4Q2010 estimate is $0.51.” Owens-Illinois currently trades at $27.41.