We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sealed Air (SEE) to Report Q4 Earnings: Is A Beat in Store?
Read MoreHide Full Article
Sealed Air Corporation (SEE - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 17, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for the fourth-quarter revenues is pegged at $1.50 billion, suggesting growth of 11.6% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings is currently at $1.14 per share, indicating year-over-year growth of 28%.
Q3 Performance
Sealed Air’s third-quarter earnings and sales beat the Zacks Consensus Estimates and increased year over year. The company has a trailing four-quarter earnings surprise of 4.03%, on average.
Our proven model conclusively 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 an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Sealed Air has an Earnings ESP of +1.43%.
Sealed Air’s fourth-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 amid the stay-at-home scenario. Around 63% of the company’s revenues is generated from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute to around 14%. 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.
In December 2018, Sealed Air announced a reformation plan called 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 aided the operating margin performance during the December-end quarter. However, higher raw material costs and freight costs might have exerted pressure on the company’s quarterly performance.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s fourth-quarter net sales is pegged at $844 million, calling for growth of 11.5% from the prior-year period’s tally. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $204 million, suggesting an increase of 20% from the year-ago quarter’s levels.
In the segment, the retail channel and protein exports are expected to have been strong through the quarter. The company is likely to have witnessed higher foodservice demand on the reopening of restaurants and other public venues.
The Zacks Consensus Estimate for the Protective Packaging segment’s net sales is pegged at $657 million for the October - December period, indicating a year-over-year improvement of 12.5%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is $132 million, suggesting growth of 14.8% from the year-earlier period’s reading. The segment’s medical and life sciences portfolio continues to gain from strong demand for medical supplies, pharmaceuticals and personal protective equipment coupled with higher demand for temperature assurance packaging solutions.
Continued growth in e-commerce and fulfillment and higher demand in the industrial end markets are likely to have boosted the segment’s to-be-reported quarter’s performance. A strong demand for automated equipment and sustainable packaging solutions continues to fuel growth in the food and protected packaging segments.
Price Performance
In the past year, shares of Sealed Air have gained 46.4% compared with the industry’s growth of 7.7%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +9.75% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2022 earnings is currently pegged at $2.28 per share, suggesting a 41% decline from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $8.09 billion, highlighting a year-over-year improvement of 0.52%. Deere has a trailing four-quarter earnings surprise of 33.5%, on average. DE has a long-term earnings growth of 11.2%.
The Middleby Corporation (MIDD - Free Report) currently has an Earnings ESP of +3.18% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings is currently pegged at $2.07 per share, suggesting 27.8% growth from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $853 million, highlighting year-over-year growth of 16.9%. Middleby has a trailing four-quarter earnings surprise of 4.54%, on average.
MSC Industrial Direct Co., Inc. (MSM - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings have undergone upward revisions in the past 30 days and is currently pegged at $1.24 per share. This suggests year-over-year growth of 20.4%.
The Zacks Consensus Estimate for MSC Industrial’s quarterly revenues is pegged at $861 million, indicating year-over-year growth of 11.2%. MSM has a trailing four-quarter earnings surprise of 2.9%, on average.
Image: Bigstock
Sealed Air (SEE) to Report Q4 Earnings: Is A Beat in Store?
Sealed Air Corporation (SEE - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 17, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for the fourth-quarter revenues is pegged at $1.50 billion, suggesting growth of 11.6% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings is currently at $1.14 per share, indicating year-over-year growth of 28%.
Q3 Performance
Sealed Air’s third-quarter earnings and sales beat the Zacks Consensus Estimates and increased year over year. The company has a trailing four-quarter earnings surprise of 4.03%, on average.
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 conclusively 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 an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Sealed Air has an Earnings ESP of +1.43%.
Zacks Rank: Sealed Air currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Note
Sealed Air’s fourth-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 amid the stay-at-home scenario. Around 63% of the company’s revenues is generated from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute to around 14%. 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.
In December 2018, Sealed Air announced a reformation plan called 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 aided the operating margin performance during the December-end quarter. However, higher raw material costs and freight costs might have exerted pressure on the company’s quarterly performance.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s fourth-quarter net sales is pegged at $844 million, calling for growth of 11.5% from the prior-year period’s tally. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $204 million, suggesting an increase of 20% from the year-ago quarter’s levels.
In the segment, the retail channel and protein exports are expected to have been strong through the quarter. The company is likely to have witnessed higher foodservice demand on the reopening of restaurants and other public venues.
The Zacks Consensus Estimate for the Protective Packaging segment’s net sales is pegged at $657 million for the October - December period, indicating a year-over-year improvement of 12.5%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is $132 million, suggesting growth of 14.8% from the year-earlier period’s reading. The segment’s medical and life sciences portfolio continues to gain from strong demand for medical supplies, pharmaceuticals and personal protective equipment coupled with higher demand for temperature assurance packaging solutions.
Continued growth in e-commerce and fulfillment and higher demand in the industrial end markets are likely to have boosted the segment’s to-be-reported quarter’s performance. A strong demand for automated equipment and sustainable packaging solutions continues to fuel growth in the food and protected packaging segments.
Price Performance
In the past year, shares of Sealed Air have gained 46.4% compared with the industry’s growth of 7.7%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +9.75% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2022 earnings is currently pegged at $2.28 per share, suggesting a 41% decline from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $8.09 billion, highlighting a year-over-year improvement of 0.52%. Deere has a trailing four-quarter earnings surprise of 33.5%, on average. DE has a long-term earnings growth of 11.2%.
The Middleby Corporation (MIDD - Free Report) currently has an Earnings ESP of +3.18% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings is currently pegged at $2.07 per share, suggesting 27.8% growth from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $853 million, highlighting year-over-year growth of 16.9%. Middleby has a trailing four-quarter earnings surprise of 4.54%, on average.
MSC Industrial Direct Co., Inc. (MSM - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings have undergone upward revisions in the past 30 days and is currently pegged at $1.24 per share. This suggests year-over-year growth of 20.4%.
The Zacks Consensus Estimate for MSC Industrial’s quarterly revenues is pegged at $861 million, indicating year-over-year growth of 11.2%. MSM has a trailing four-quarter earnings surprise of 2.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.