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Sealed Air (SEE) to Report Q4 Earnings: What's in the Offing?
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Sealed Air Corporation (SEE - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 9, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for quarterly earnings is pegged at 79 cents, suggesting year-over-year growth of 1.3%. The same for revenues is pinned at $1.30 billion compared with the year-ago quarter’s reported figure of $1.29 billion.
The Zacks Consensus Estimate for quarterly earnings has remained unrevised in the past 30 days.
A Sneak Peek at Q3
Sealed Air’s third-quarter earnings and revenues beat the respective Zacks Consensus Estimates and increased year over year as well. The company has a trailing four-quarter average earnings surprise of 23.1%.
Our proven model predicts an earnings beat for Sealed Air this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise.
Earnings ESP: Sealed Air has an Earnings ESP of +2.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sealed Air currently carries a Zacks Rank #2.
Key Factors
Sealed Air is likely to have benefited in the December-end quarter from elevated demand for packaging of food, beverage and healthcare products, as well as the e-commerce boom amid the stay-at-home customers owing to the coronavirus-induced crisis. Notably, 64% of the company’s revenues come in from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute around 14%. Further, gains from the company’s acquisitions, including Automated Packaging Systems, AFP and Fagerdala, are likely to get reflected in the quarterly results.
In December 2018, Sealed Air announced a reformation plan — Reinvent SEE Strategy — along with a fresh restructuring program to boost growth and earnings. The strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. Savings from these initiatives are likely to have contributed to the operating margin and thus, are anticipated to get reflected in the fourth-quarter numbers. However, weak demand in certain end markets and overall impact of the coronavirus pandemic might have dented the company’s quarterly performance.
Segment Estimates
The Zacks Consensus Estimate for the Food Care segment’s fourth-quarter net sales is pegged at $752 million, indicating a decrease of 1.05%, year on year. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $166 million, suggesting a decline of 2.9% from the prior-year quarter.
The Zacks Consensus Estimate for the Product Care segment’s net sales is pinned at $549 million for the December-end quarter, indicating year-over-year growth of 1.9%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is $115 million, calling for a rise of 7.5% from the year-ago quarter.
The company’s traditional packaging solutions, which include Bubble Wrap, standardized mailers, shrink film and void fill, generate around one-third of the Product Care segment’s sales. This part of the segment is bearing the brunt of the market’s shift to automation and the global industrial manufacturing slowdown. Moreover, specialty industrial applications, which include the Instapak platform and integrated fabrication solutions, account for another one-third of Product Care sales, also remain weak, thanks to the bleak industrial demand and the long-standing U.S.-China trade spat. Therefore, product care volume might have declined in the soon-to-be-reported quarter.
Price Performance
Over the past three months, shares of Sealed Air have gained 2.9% compared with the industry’s growth of 4.5%.
Other Stocks Poised to Beat Earnings Estimates
Here are a few other Industrial Products stocks, which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases.
Sonoco Products Company (SON - Free Report) carries a Zacks Rank of 3 and has an Earnings ESP of +1.18%, at present.
Lincoln Electric Holdings, Inc. (LECO - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.55%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Sealed Air (SEE) to Report Q4 Earnings: What's in the Offing?
Sealed Air Corporation (SEE - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 9, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for quarterly earnings is pegged at 79 cents, suggesting year-over-year growth of 1.3%. The same for revenues is pinned at $1.30 billion compared with the year-ago quarter’s reported figure of $1.29 billion.
The Zacks Consensus Estimate for quarterly earnings has remained unrevised in the past 30 days.
A Sneak Peek at Q3
Sealed Air’s third-quarter earnings and revenues beat the respective Zacks Consensus Estimates and increased year over year as well. The company has a trailing four-quarter average earnings surprise of 23.1%.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote
Earnings Whispers
Our proven model predicts an earnings beat for Sealed Air this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise.
Earnings ESP: Sealed Air has an Earnings ESP of +2.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sealed Air currently carries a Zacks Rank #2.
Key Factors
Sealed Air is likely to have benefited in the December-end quarter from elevated demand for packaging of food, beverage and healthcare products, as well as the e-commerce boom amid the stay-at-home customers owing to the coronavirus-induced crisis. Notably, 64% of the company’s revenues come in from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute around 14%. Further, gains from the company’s acquisitions, including Automated Packaging Systems, AFP and Fagerdala, are likely to get reflected in the quarterly results.
In December 2018, Sealed Air announced a reformation plan — Reinvent SEE Strategy — along with a fresh restructuring program to boost growth and earnings. The strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. Savings from these initiatives are likely to have contributed to the operating margin and thus, are anticipated to get reflected in the fourth-quarter numbers.
However, weak demand in certain end markets and overall impact of the coronavirus pandemic might have dented the company’s quarterly performance.
Segment Estimates
The Zacks Consensus Estimate for the Food Care segment’s fourth-quarter net sales is pegged at $752 million, indicating a decrease of 1.05%, year on year. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $166 million, suggesting a decline of 2.9% from the prior-year quarter.
The Zacks Consensus Estimate for the Product Care segment’s net sales is pinned at $549 million for the December-end quarter, indicating year-over-year growth of 1.9%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is $115 million, calling for a rise of 7.5% from the year-ago quarter.
The company’s traditional packaging solutions, which include Bubble Wrap, standardized mailers, shrink film and void fill, generate around one-third of the Product Care segment’s sales. This part of the segment is bearing the brunt of the market’s shift to automation and the global industrial manufacturing slowdown. Moreover, specialty industrial applications, which include the Instapak platform and integrated fabrication solutions, account for another one-third of Product Care sales, also remain weak, thanks to the bleak industrial demand and the long-standing U.S.-China trade spat. Therefore, product care volume might have declined in the soon-to-be-reported quarter.
Price Performance
Over the past three months, shares of Sealed Air have gained 2.9% compared with the industry’s growth of 4.5%.
Other Stocks Poised to Beat Earnings Estimates
Here are a few other Industrial Products stocks, which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases.
Terex Corporation (TEX - Free Report) has an Earnings ESP of +1,900.18% and currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rankstocks here.
Sonoco Products Company (SON - Free Report) carries a Zacks Rank of 3 and has an Earnings ESP of +1.18%, at present.
Lincoln Electric Holdings, Inc. (LECO - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.55%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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