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Analyst Blog

Shares of Sealed Air Corporation (SEE - Analyst Report) hit a new 52-week high of $27.65 on Jul 12, surpassing its previous high of $27.27. The company has delivered a robust one-year return of about 84.4% and year-to-date return of 58.9%, outperforming the S&P 500.

The Elmwood Park, NJ-based specialty packaging service provider has long-term estimated earnings per share growth rate of 12.9%. Average volume of shares traded over the last three months is approximately 1913K.

What’s Driving Sealed Air Up?

Sealed Air reported first-quarter 2013 adjusted net earnings from continuing operations of 17 cents per share, up 6% from the year-ago earnings of 16 cents per share but a penny short of the Zacks Consensus Estimate.

Although earnings missed estimates, Sealed Air declared an improved outlook for full year 2013. The company expects adjusted earnings in the range of $1.10 to $1.20 per share on net sales of $7.7–$7.9 billion. Furthermore, adjusted EBITDA is expected in the range of $1.01–$1.03 billion.

Sealed Air’s acquisition of Diversey has expanded its presence beyond specialty packaging solutions. This combination is expected to further enhance Sealed Air’s earnings per share and free cash flow generation.

Sealed Air’s ongoing Integration & Optimization Program to address the increasing macroeconomic weakness and realize additional cost reduction opportunities will likely generate cost savings and benefits of a $195–$200 million by the end of 2014.

Sealed Air currently retains a Zacks Rank #3 (Hold).

Other Stocks to Consider

Other stocks with favorable Zacks Rank in the same industry are Mobile Mini, Inc. (MINI - Snapshot Report), Graphic Packaging Holding Company (GPK - Snapshot Report) and Rock-Tenn Company (RKT - Analyst Report). While Mobile Mini holds a Zacks Rank #1 (Strong Buy), Graphic Packaging and Rock-Tenn carry a Zacks Rank #2 (Buy).

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