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Container Stock Q3 Earnings to Watch on Oct 27: SEE, ATR, BMS
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The third-quarter earnings season is gaining momentum and is showing positive signs of entering the positive growth trajectory after five consecutive quarters of decline. Roughly 23% of the S&P 500 companies have reported their results logging a 3.3% increase in growth. Overall, total S&P 500 earnings are anticipated to be up 0.1% on the back of 1.5% rise in revenues. (Read more: Earnings Growth Finally Turns Positive).
The Containers-Paper, Plastics and Containers-Paper, Glass industry fall under the Industrial Products sector – one of the 16 Zacks sectors. So far 21.7% of the companies in the sector reported their numbers exhibiting a 0.5% dip in earnings for the quarter. After suffering a 21% plunge in earnings in first-quarter 2016 and a 1% dip in second-quarter, our projected figures paint a better picture for the third quarter with 3.7% growth in earnings.
With bulk of the companies yet to report, the growth trajectory is likely to move upward eventually. Last week we saw earnings beats coming from packaging companies like Sonoco Products Co. (SON - Free Report) and Crown Holdings (CCK - Free Report) . Let's take a sneak peek at three major packaging container providers to see how things are shaping up for the upcoming quarterly results to be announced on Oct 27.
Major specialty packaging service provider to a diverse set of end markets, Sealed Air Corporation (SEE - Free Report) will report third-quarter 2016 results before the market opens. In the last reported quarter, the company’s adjusted earnings improved year over year and beat the Zacks Consensus Estimate. On the other hand, revenues declined year over year and missed the Zacks Consensus Estimate.
Even though enhanced demand for core product portfolio, recently-introduced innovations, accelerated growth in the global protein market and eCommerce sector will support results, political unrest in the Middle East and weak resin prices remain headwinds. Additionally, increased R&D, sales and marketing expenses will affect margins in the near term. (Read More: Sealed Air to Report Q3 Earnings: What's in the Cards?)
Sealed Air outpaced the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 20.14%. In the last reported quarter, the company posted a positive earnings surprise of 1.56%.
The combination of Sealed Air’s Zacks Rank #3 (Hold) and Earnings ESP of -1.43% makes an earnings beat unlikely this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
AptarGroup, Inc. (ATR - Free Report) , which sells packaging, dispensing, and sealing solutions to the beauty, food and beverage markets, is expected to report its third-quarter results 2016 after the market closes.
AptarGroup delivered a positive earnings surprise of 1.11% in the last quarter. It has a fairly decent history of earnings surprises, beating in three of the last four trailing quarters, with a positive average earnings surprise of 2.71%.
While weakness in the Asian beverage market will persist in the third quarter, other markets and a strong project pipeline will drive growth. Further, unfavorable foreign currency translation remains a challenge. Nevertheless, the company will gain from product introductions.
The combination of AptarGroup’s Zacks Rank #3 and Earnings ESP of -1.21% makes an earnings beat unlikely this quarter.
Packaging products manufacturer, Bemis Company, Inc. will also report third-quarter 2016 results. Bemis delivered a positive earnings surprise of 1.52% in the last quarter. The company surpassed the Zacks Consensus Estimate in three of the last four quarters, with a positive average earnings surprise of 0.38%.
Bemis will benefit from its sustained focus on strategic initiatives, operational efficiencies and cost controls. However, foreign currency headwinds and fluctuation in raw material prices remain concerns. Bemis is unlikely to beat estimates this quarter, for it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Container Stock Q3 Earnings to Watch on Oct 27: SEE, ATR, BMS
The third-quarter earnings season is gaining momentum and is showing positive signs of entering the positive growth trajectory after five consecutive quarters of decline. Roughly 23% of the S&P 500 companies have reported their results logging a 3.3% increase in growth. Overall, total S&P 500 earnings are anticipated to be up 0.1% on the back of 1.5% rise in revenues. (Read more: Earnings Growth Finally Turns Positive).
The Containers-Paper, Plastics and Containers-Paper, Glass industry fall under the Industrial Products sector – one of the 16 Zacks sectors. So far 21.7% of the companies in the sector reported their numbers exhibiting a 0.5% dip in earnings for the quarter. After suffering a 21% plunge in earnings in first-quarter 2016 and a 1% dip in second-quarter, our projected figures paint a better picture for the third quarter with 3.7% growth in earnings.
With bulk of the companies yet to report, the growth trajectory is likely to move upward eventually. Last week we saw earnings beats coming from packaging companies like Sonoco Products Co. (SON - Free Report) and Crown Holdings (CCK - Free Report) . Let's take a sneak peek at three major packaging container providers to see how things are shaping up for the upcoming quarterly results to be announced on Oct 27.
Major specialty packaging service provider to a diverse set of end markets, Sealed Air Corporation (SEE - Free Report) will report third-quarter 2016 results before the market opens. In the last reported quarter, the company’s adjusted earnings improved year over year and beat the Zacks Consensus Estimate. On the other hand, revenues declined year over year and missed the Zacks Consensus Estimate.
Even though enhanced demand for core product portfolio, recently-introduced innovations, accelerated growth in the global protein market and eCommerce sector will support results, political unrest in the Middle East and weak resin prices remain headwinds. Additionally, increased R&D, sales and marketing expenses will affect margins in the near term. (Read More: Sealed Air to Report Q3 Earnings: What's in the Cards?)
Sealed Air outpaced the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 20.14%. In the last reported quarter, the company posted a positive earnings surprise of 1.56%.
SEALED AIR CORP Price and EPS Surprise
SEALED AIR CORP Price and EPS Surprise | SEALED AIR CORP Quote
The combination of Sealed Air’s Zacks Rank #3 (Hold) and Earnings ESP of -1.43% makes an earnings beat unlikely this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
AptarGroup, Inc. (ATR - Free Report) , which sells packaging, dispensing, and sealing solutions to the beauty, food and beverage markets, is expected to report its third-quarter results 2016 after the market closes.
AptarGroup delivered a positive earnings surprise of 1.11% in the last quarter. It has a fairly decent history of earnings surprises, beating in three of the last four trailing quarters, with a positive average earnings surprise of 2.71%.
APTARGROUP INC Price and EPS Surprise
APTARGROUP INC Price and EPS Surprise | APTARGROUP INC Quote
While weakness in the Asian beverage market will persist in the third quarter, other markets and a strong project pipeline will drive growth. Further, unfavorable foreign currency translation remains a challenge. Nevertheless, the company will gain from product introductions.
The combination of AptarGroup’s Zacks Rank #3 and Earnings ESP of -1.21% makes an earnings beat unlikely this quarter.
Packaging products manufacturer, Bemis Company, Inc. will also report third-quarter 2016 results. Bemis delivered a positive earnings surprise of 1.52% in the last quarter. The company surpassed the Zacks Consensus Estimate in three of the last four quarters, with a positive average earnings surprise of 0.38%.
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, foreign currency headwinds and fluctuation in raw material prices remain concerns. Bemis is unlikely to beat estimates this quarter, for it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>