Ball shares are on pace to have their worst quarter since 1973, as the company takes a hit from weaker customer demand and the sale of a business in Russia.
Best known for making aluminum packaging for drinks, such as cans and cups, Ball (ticker: BALL) has had a difficult year, with its shares falling 50% in 2022.
August was particularly difficult, when the company reported second-quarter earnings below Wall Street estimates and became the S&P 500's worst performing stock that month.
"Our global beverage team is preparing for additional demand volatility, inflation and regional customer anomalies given global economic conditions," Daniel Fisher, Ball chief executive, said in the company's conference call in August.
Then on Wednesday, Ball announced that it sold its beverage packaging business in Russia to Arnest Group for $530 million. In that deal, Arnest acquired all of Ball's Russian-based business amid continuing geopolitical tensions.
Shares of Ball were down for six consecutive days, falling 0.8% to $47.93 on Tuesday. This was the longest losing streak for the stock since July 15. The stock was on pace for a new 52-week low and its lowest close since January 2019.
This could also be the worst quarter for Ball since the 1970s.
Deutsche Bank analyst Kyle White maintained his Hold rating but lowered his 12-month price target on Ball to $54 from $64 and cut his earnings estimates for 2022 on Tuesday.
"Our 2022 earnings per share estimate goes to $3.22 from $3.40 due to the sale of the Russia business, a lowered volume outlook and higher inflationary costs," White wrote in his research note.
Truist Securities analyst Michael Roxland also has a Hold rating on the stock but recently lowered his price target to $55 from $61. Roxland wrote in a research note that while he views Ball "as a well-run company with a positive demand growth profile long-term, the company is currently facing headwinds from weaker North America demand, inflation, supply chain, and international exposure."
"In addition, market demand remains flat while the company is intent on reducing inventories, which it built earlier in the year as it expected a more robust summer selling season in North America and which will negatively impact profitability," Roxland wrote.
Ball didn't immediately respond to a request for comment.