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.