Analyst Note| Charles Gross |
O-I Glass shares leaped higher, as earnings in the second quarter proved less dreary than the market expected. Sales volumes fell slightly less than we were expecting, and operating margins remained decent under the circumstances. The market was likely relieved to see $181 million in cash flow from operations, alleviating stress that the company may struggle to survive the crisis. However, our outlook for O-I's fundamentals remains essentially unchanged. We have left our $10 per share fair value estimate in place, along with our no-moat rating.