Why O-I Glass Stock Was Surging Today

O-I Glass' (NYSE: OI) latest quarterly results were indisputably a glass half-full, and the company's stock is being rewarded for this. As of Wednesday mid-afternoon the company's shares were zooming nearly 15% higher, easily outpacing the 0.8% gain of the S&P 500 index.

Price bumps for the win

O-I Glass, which as its name suggests manufactures glass products (mainly for the food and beverage industries), reported its third-quarter results shortly after market close Tuesday.

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For the period, O-I Glass reported that its net sales were essentially flat year over year at $1.7 billion. Although overall volume was down, this was offset by higher average selling prices, the company said.

The situation on the bottom line was different. O-I Glass flipped to a net income not according to generally accepted accounting principles (GAAP) of $75 million, or $0.48 per share, against the year-ago loss of $6 million.

Both line items exceeded the average analyst estimates, which called for $1.66 billion on the top line and non-GAAP (adjusted) earnings per share of $0.42.

In its earnings release, O-I Glass attributed its improved performance to factors such as greater production efficiency and a favorable pricing environment.

Big adjustment to net income guidance

It feels like those elements will continue to positively affect O-I Glass, as management raised its profitability guidance for the entirety of 2025.

The company now sees adjusted earnings coming in at $1.55 to $1.65 per share for the year, well up from the preceding projection of $1.30 to $1.55. The new range's low end is well above the $1.47 per share consensus analyst estimate.

O-I Glass maintained its forecast for free cash flow, meanwhile. This stayed at $150 million to $200 million.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.