What happened

Shares of glass manufacturer Owens-Illinois (NYSE:OI) fell as much as 22.5% in trading early Thursday after the company reported second-quarter results. Shares were still down 20.6% at 11:55 a.m. EDT, so there isn't too much of a bounce off today's lows.

So what

Sales in the quarter fell less than 1% to $1.76 billion, and net income rose from $50 million a year ago to $65 million, or $0.42 per share. On an adjusted basis, which analysts usually compare to, earnings were $0.69 per share, down from $0.77 a year ago.

Table full of green glass bottles that have just been manufactured.

Image source: Getty Images.

Analysts were expecting revenue to be $1.76 billion and earnings to be $0.77 per share, so that's where the disappointment comes from. Third-quarter guidance of earnings of $0.60 to $0.65 per share was also well below expectations of $0.87 from Wall Street, which didn't help the stock today.

Now what

Investors shouldn't get too wrapped up in one quarterly earnings miss, but when expectations over a longer period of time come down, there's reason for concern. Keep in mind, however, that adjusted earnings are expected to be $2.40 to $2.55 per share, which is strong given the current stock price near $13.50. Long term, I think there's value in the stock, even if investors aren't impressed with the company's operations today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.