What happened

Shares of Owens-Illinois Inc. (NYSE:OI), the world's largest manufacturer of glass bottles, are up 10% as of 3:27 p.m. EDT Tuesday as investors digested second-quarter results.

So what

Owens-Illinois reported net income of $0.31 per share; when adjusted for one-time gains, earnings reached $0.77 per share. That result was good enough to top analysts' estimates of $0.75 per share, although its $1.77 billion in revenue fell a little short of analysts' estimates of $1.82 billion.

Rows of manufactured green glass bottles on an assembly line.

Image source: Getty Images.

"Global shipments were solid, taking into account the strong performance of our joint venture with CBI. We continue to benefit from favorable pricing dynamics and a concerted effort to improve sales mix. And, Asia Pacific is nearing successful completion of its asset advancement project. Building on a secure foundation, we expect continued growth in sales, margins, earnings and cash flow in 2019 and beyond." said Andres Lopez, CEO, in a press release.

Now what

Owens-Illinois' second-quarter results exceeded management's guidance and, while it wasn't a blockbuster quarter, it was good enough to boost investor confidence after the stock had shed roughly 24% of its value year to date, prior to the second-quarter announcement. Management's focus now turns to the Americas region, where its Total Systems Cost efforts hopefully offset inflationary pressures. Today's 10% pop was a breath of fresh air for investors, but the company trades at a forward price-to-earnings ratio of six times, per Morningstar.com, meaning there's plenty of work to do to reduce costs and improve the bottom line before investors fully buy in.

Daniel Miller 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.