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Container Stocks to Watch for on July 28 - ATR, BMS, SEE
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The second-quarter earnings season is gathering steam. Roughly 25% of the S&P 500 companies have reported their results, logging a 1.1% decline in growth. Overall, total S&P 500 earnings are expected to be down 3.4% on a 0.5% dip in revenues. If the estimates are proved to be true, this will be the fifth quarter in a row to suffer an earnings decline (read more: Decisive Week for the Q2 Earnings Season?).
The Containers-Paper, Plastics industry falls under the Industrial Products sector – one of the 16 Zacks sectors. In the Industrial Products sector, so far 23.8% of the companies have reported their second-quarter numbers, putting up 3% earnings growth on the scoreboard. However, it is too early to be optimistic on this sector. Based on our projections for the quarter, growth will be in the negative territory for 9 of the 16 Zacks sectors, and the Industrial Products sector will be no exception as the sector’s earnings are expected to fall 8% in the quarter. However, compared to the unceremonious 22.2% plunge in earnings suffered by the sector in first-quarter 2016, this should count as a major improvement.
Last week, we saw results coming in from packaging companies like Sonoco Products Co. (SON - Free Report) , Packaging Corporation of America (PKG - Free Report) and Crown Holdings (CCK - Free Report) . Not only did they beat estimates, earnings also improved year over year on improved volumes.
Among the container stocks slated to report this week, let's take a sneak peek at three major packaging companies to see how things are shaping up for the upcoming quarterly results.
AptarGroup, Inc. (ATR - Free Report) , which sells packaging, dispensing, and sealing solutions to the beauty, food and beverage markets, is expected to report second-quarter results after the market closes on Jul 28.
AptarGroup delivered a negative 1.39% earnings surprise last quarter. However, it has a fairly decent history of earnings surprises, beating in 3 of the last 4 quarters, with a positive average earnings surprise of 7.43%.
The company will benefit from continued core sales growth in its segments and persistent focus on cost containment will also boost margins. Our proven model does not conclusively show that AptarGroup is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. With a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, AptarGroup fails on both counts.
Packaging products manufacturer, Bemis Company, Inc. will report second-quarter results on Jul 28.
Bemis Company delivered a negative 3.23% earnings surprise last quarter. The company has a mixed earnings history, beating the Zacks Consensus Estimate in two of the trailing four quarters, with a negative average earnings surprise of 0.37%.
Bemis will benefit from its sustained focus on strategic initiatives, operational efficiencies and cost controls. However, operational inefficiencies in the company’s Latin-American business and the North-American healthcare business, and foreign currency headwinds remain concerns. Bemis has an earnings ESP of 0.00% and a Zacks Rank #3 (Hold). This makes surprise prediction difficult.
Sealed Air Corporation (SEE - Free Report) will also report second-quarter results on Jul 28, before the market opens.
In the last reported quarter, the company posted a positive earnings surprise of 4.17%. Sealed Air outpaced the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 22.52%.
Sealed Air will benefit from acquisitions, focus on growth opportunities, effective cost management and savings from restructuring. The combination of Sealed Air’s Zacks Rank #3 and +1.56% ESP makes us reasonably confident of an earnings beat. (Read More: Will Sealed Air Pull a Surprise Again in Q2 Earnings?)
Stay tuned for our full earnings articles to see how these stocks actually fare this season.
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Container Stocks to Watch for on July 28 - ATR, BMS, SEE
The second-quarter earnings season is gathering steam. Roughly 25% of the S&P 500 companies have reported their results, logging a 1.1% decline in growth. Overall, total S&P 500 earnings are expected to be down 3.4% on a 0.5% dip in revenues. If the estimates are proved to be true, this will be the fifth quarter in a row to suffer an earnings decline (read more: Decisive Week for the Q2 Earnings Season?).
The Containers-Paper, Plastics industry falls under the Industrial Products sector – one of the 16 Zacks sectors. In the Industrial Products sector, so far 23.8% of the companies have reported their second-quarter numbers, putting up 3% earnings growth on the scoreboard. However, it is too early to be optimistic on this sector. Based on our projections for the quarter, growth will be in the negative territory for 9 of the 16 Zacks sectors, and the Industrial Products sector will be no exception as the sector’s earnings are expected to fall 8% in the quarter. However, compared to the unceremonious 22.2% plunge in earnings suffered by the sector in first-quarter 2016, this should count as a major improvement.
Last week, we saw results coming in from packaging companies like Sonoco Products Co. (SON - Free Report) , Packaging Corporation of America (PKG - Free Report) and Crown Holdings (CCK - Free Report) . Not only did they beat estimates, earnings also improved year over year on improved volumes.
Among the container stocks slated to report this week, let's take a sneak peek at three major packaging companies to see how things are shaping up for the upcoming quarterly results.
AptarGroup, Inc. (ATR - Free Report) , which sells packaging, dispensing, and sealing solutions to the beauty, food and beverage markets, is expected to report second-quarter results after the market closes on Jul 28.
AptarGroup delivered a negative 1.39% earnings surprise last quarter. However, it has a fairly decent history of earnings surprises, beating in 3 of the last 4 quarters, with a positive average earnings surprise of 7.43%.
APTARGROUP INC Price and EPS Surprise
APTARGROUP INC Price and EPS Surprise | APTARGROUP INC Quote
The company will benefit from continued core sales growth in its segments and persistent focus on cost containment will also boost margins. Our proven model does not conclusively show that AptarGroup is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. With a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, AptarGroup fails on both counts.
Packaging products manufacturer, Bemis Company, Inc. will report second-quarter results on Jul 28.
Bemis Company delivered a negative 3.23% earnings surprise last quarter. The company has a mixed earnings history, beating the Zacks Consensus Estimate in two of the trailing four quarters, with a negative average earnings surprise of 0.37%.
BEMIS Price and EPS Surprise
BEMIS Price and EPS Surprise | BEMIS Quote
Bemis will benefit from its sustained focus on strategic initiatives, operational efficiencies and cost controls. However, operational inefficiencies in the company’s Latin-American business and the North-American healthcare business, and foreign currency headwinds remain concerns. Bemis has an earnings ESP of 0.00% and a Zacks Rank #3 (Hold). This makes surprise prediction difficult.
Sealed Air Corporation (SEE - Free Report) will also report second-quarter results on Jul 28, before the market opens.
In the last reported quarter, the company posted a positive earnings surprise of 4.17%. Sealed Air outpaced the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 22.52%.
SEALED AIR CORP Price and EPS Surprise
SEALED AIR CORP Price and EPS Surprise | SEALED AIR CORP Quote
Sealed Air will benefit from acquisitions, focus on growth opportunities, effective cost management and savings from restructuring. The combination of Sealed Air’s Zacks Rank #3 and +1.56% ESP makes us reasonably confident of an earnings beat. (Read More: Will Sealed Air Pull a Surprise Again in Q2 Earnings?)
Stay tuned for our full earnings articles to see how these stocks actually fare this season.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>