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Sealed Air (SEE) Misses Q1 Earnings, Revenues Estimates
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Sealed Air Corporation (SEE - Free Report) is a major specialty packaging service provider catering to a diverse set of end markets. The company operates in the United States as well as globally with packaging and performance-based materials and equipment systems serving food, medical, and an array of industrial and consumer.
Sealed Air will benefit from enhanced demand for its core product portfolio and the recently introduced innovations. Accelerated growth in the global protein market along with the eCommerce sector also remains tailwinds. However, unfavorable foreign currency and weakness in industrial-based businesses will impact its results. Further, weaker-than-anticipated growth in the Diversey Care segment due to the brand licensing expiration with SC Johnson is likely to hurt the company’s first quarter results.
Investors have been thus eagerly waiting for the first quarter earnings release of this Elmwood Park, N.J. based packaging company. Let’s have a quick look at its earnings results.
Estimate Trend & Surprise History: The investors should note that the earnings estimate for Sealed Air for the first quarter has moved south over the past month. The Zacks Consensus Estimate is currently pegged at 46 cents, moving 4.2% down over the said timeframe.
As regards earnings surprise, Sealed Air has an impressive track record. The company has outpaced the Zacks Consensus Estimate in all the past four quarters, with an average beat of 2.12%.
Earnings: Sealed Air missed on earnings by a margin of 6.5%. Our consensus called for earnings per share (EPS) of 46 cents, and the company reported adjusted EPS of 43 cents.
Revenue: Sealed Air also missed on revenues. It reported first quarter quarter revenues of $1.03 billion, falling short of the Zacks Consensus Estimate of $1.60 billion.
Key Developments to Note: For the full year 2017, Sealed Air expects sales of $4.3 billion compared to $4.2 billion for the full year 2016. The guidance reflects an expected 3% constant dollar sales growth in Food Care and 3-4% constant dollar sales growth in Product Care. Currency will negatively impact 2017 net sales by $35 million. Adjusted EBITDA is estimated to be approximately $825 million and adjusted EPS is expected to be around $1.70 per share for 2017.
Zacks Rank: Currently Sealed Air has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on this Sealed Air earnings report later!
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Sealed Air (SEE) Misses Q1 Earnings, Revenues Estimates
Sealed Air Corporation (SEE - Free Report) is a major specialty packaging service provider catering to a diverse set of end markets. The company operates in the United States as well as globally with packaging and performance-based materials and equipment systems serving food, medical, and an array of industrial and consumer.
Sealed Air will benefit from enhanced demand for its core product portfolio and the recently introduced innovations. Accelerated growth in the global protein market along with the eCommerce sector also remains tailwinds. However, unfavorable foreign currency and weakness in industrial-based businesses will impact its results. Further, weaker-than-anticipated growth in the Diversey Care segment due to the brand licensing expiration with SC Johnson is likely to hurt the company’s first quarter results.
Investors have been thus eagerly waiting for the first quarter earnings release of this Elmwood Park, N.J. based packaging company. Let’s have a quick look at its earnings results.
Estimate Trend & Surprise History: The investors should note that the earnings estimate for Sealed Air for the first quarter has moved south over the past month. The Zacks Consensus Estimate is currently pegged at 46 cents, moving 4.2% down over the said timeframe.
As regards earnings surprise, Sealed Air has an impressive track record. The company has outpaced the Zacks Consensus Estimate in all the past four quarters, with an average beat of 2.12%.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote
Earnings: Sealed Air missed on earnings by a margin of 6.5%. Our consensus called for earnings per share (EPS) of 46 cents, and the company reported adjusted EPS of 43 cents.
Revenue: Sealed Air also missed on revenues. It reported first quarter quarter revenues of $1.03 billion, falling short of the Zacks Consensus Estimate of $1.60 billion.
Key Developments to Note: For the full year 2017, Sealed Air expects sales of $4.3 billion compared to $4.2 billion for the full year 2016. The guidance reflects an expected 3% constant dollar sales growth in Food Care and 3-4% constant dollar sales growth in Product Care. Currency will negatively impact 2017 net sales by $35 million. Adjusted EBITDA is estimated to be approximately $825 million and adjusted EPS is expected to be around $1.70 per share for 2017.
Zacks Rank: Currently Sealed Air has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on this Sealed Air earnings report later!
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>