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Sealed Air (SEE) to Report Q2 Earnings: What's in the Cards?

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Sealed Air Corporation (SEE - Free Report) is scheduled to report second-quarter 2021 results on Aug 3, before the opening bell.

Q2 Estimates

The Zacks Consensus Estimate for the second-quarter revenues is pegged at $1.27 billion, suggesting growth of 10.5%, year over year. The consensus mark for quarterly earnings currently stands at 80 cents, indicating an increase of 5.3% from the prior-year period.

Q1 Performance

Sealed Air’s first-quarter earnings and revenues beat the respective Zacks Consensus Estimates and increased year over year. The company has a trailing four-quarter earnings surprise of 21.4%, on average.

Key Factors to Note

Sealed Air’s second-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products, as well as surging e-commerce activities, as customers prefer to stay indoors amid the coronavirus crisis. Around 63% of Sealed Air’s revenues come in from 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, Inc. and Fagerdala, are likely to get reflected in the to-be-reported quarter’s top-line 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 performance during the June-end quarter. However, higher raw material costs and freight costs might have weighed on the company’s quarterly performance.

Segment Estimates

The Zacks Consensus Estimate for the Food Care segment’s first-quarter net sales is pegged at $709 million, calling for year-over-year growth of 5.3%. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $163 million, suggesting a decline of 3.5% from the prior-year quarter. In the segment, the retail channel and protein exports are expected to have been strong through the quarter. Food service is also anticipated to have witnessed recovery on the reopening of restaurants and other public venues.

The Zacks Consensus Estimate for the Product Care segment’s net sales is pegged at $548 million for the June-end quarter, indicating a year-over-year improvement of 14.6%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is $105 million, suggesting growth of 14.1% from the year-ago period. Continued growth in e-commerce and fulfillment, and the recovery in industrial end markets are likely to have contributed to the segment’s to-be-reported quarter’s performance.

Sealed Air Corporation Price and EPS Surprise

Sealed Air Corporation Price and EPS Surprise

Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote

What the Zacks Model Indicates

Our proven model doesn’t conclusively predict 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 an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Sealed Air is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Over the past year, shares of Sealed Air have gained 57.6% compared with the industry’s rally of 32%.

Zacks Investment Research
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Stocks Poised to Beat Earnings Estimates

Here are some Industrial Products stocks, which you may consider as our model shows that these 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 +15.41% and carries a Zacks Rank #2, currently.

Welbilt, Inc. (WBT - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +44.68%.

Plug Power Inc. (PLUG - Free Report) has an Earnings ESP of +27.08% and carries a Zacks Rank of 3, at present.

In-Depth Zacks Research for the Tickers Above

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Terex Corporation (TEX) - free report >>

Sealed Air Corporation (SEE) - free report >>

Plug Power, Inc. (PLUG) - free report >>

Welbilt, Inc. (WBT) - free report >>