Ball Earnings: Destocking Relents, Paving Way for Aluminum Can Volume Growth

Narrow-moat-rated Ball reported solid second quarter results that were in line with our expectations. Net sales fell 3.5% year over year, largely due to the pass-through of lower aluminum costs. Notably, global beverage can shipments rose almost 3% year over year as inventory destocking headwinds that have weighed on Ball for over a year relented. While the pass-through of aluminum costs continues to weigh on top-line growth, recovering demand in many of Ball’s end markets should drive volume growth in the second half of the year. As such, we have maintained our $60 fair value estimate.