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The Zacks Consensus Estimate for the first-quarter revenues is pegged at $1.39 billion, suggesting growth of 10% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 92 cents per share, indicating year-over-year growth of 18%.
Q4 Performance
Sealed Air’s fourth-quarter 2021 earnings and sales increased year over year. While revenues beat the Zacks Consensus Estimate, earnings missed the same. The company has a trailing four-quarter earnings surprise of 2.9%, 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 +1.09%.
Sealed Air’s first-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging e-commerce activities. Around 62% of the company’s revenues are generated from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute nearly 12%.
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. The capabilities, operational disciplines, and governance processes established through the Reinvent SEE business transformation are now embedded in the company’s on-going productivity improvement system, SEE Operating Engine. Savings from these initiatives are likely to have driven the operating margin performance during the March-ended quarter. However, higher raw material costs and freight costs might have weighed on the company’s performance in the quarter to be reported.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s first-quarter net sales is pegged at $782 million, suggesting growth of 11% from the prior-year period. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $173 million, indicating an increase of 10% from the year-ago quarter’s levels. The segment is likely to have witnessed higher foodservice demand on the reopening of restaurants and other public venues, and strong demand for automated equipment solutions.
The Zacks Consensus Estimate for the Protective Packaging segment’s first-quarter net sales is pegged at $606 million, indicating a year-over-year improvement of 7%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA stands at $114 million, suggesting growth of 4% from the year-earlier reported figure. 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 might 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
Image Source: Zacks Investment Research
In the past year, shares of Sealed Air have gained 33% compared with the industry’s growth of 0.7%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other Industrial Products stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases.
Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $4.81 billion for the first quarter of 2022 indicates year-over-year growth of 2.6%.
The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2022 currently stands at $1.60, suggesting year-over-year growth of 11%. ETN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7%.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +0.74% and a Zacks Rank of 2. The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2022 earnings is pegged at $6.65 per share, suggesting 17% growth from the year-ago quarter.
The Zacks Consensus Estimate for its quarterly revenues stands at $13.4 billion, suggesting year-over-year growth of 22.2%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average.
Illinois Tool Works Inc. (ITW - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank #3. The Zacks Consensus Estimate for Illinois Tool’s first-quarter 2022 earnings is currently pegged at $2.07 per share, unchanged in the past 30 days. The projection indicates a 1.9% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Illinois Tool’s quarterly revenues is pegged at $3.7 billion, which indicates a year-over-year improvement of 6.3%. ITW has a trailing four-quarter earnings surprise of 3.7%, on average.
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Sealed Air (SEE) to Report Q1 Earnings: Is a Beat in Store?
Sealed Air Corporation (SEE - Free Report) is scheduled to report first-quarter 2022 results on May 3, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for the first-quarter revenues is pegged at $1.39 billion, suggesting growth of 10% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 92 cents per share, indicating year-over-year growth of 18%.
Q4 Performance
Sealed Air’s fourth-quarter 2021 earnings and sales increased year over year. While revenues beat the Zacks Consensus Estimate, earnings missed the same. The company has a trailing four-quarter earnings surprise of 2.9%, 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 +1.09%.
Zacks Rank: Sealed Air currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Note
Sealed Air’s first-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging e-commerce activities. Around 62% of the company’s revenues are generated from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute nearly 12%.
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. The capabilities, operational disciplines, and governance processes established through the Reinvent SEE business transformation are now embedded in the company’s on-going productivity improvement system, SEE Operating Engine. Savings from these initiatives are likely to have driven the operating margin performance during the March-ended quarter. However, higher raw material costs and freight costs might have weighed on the company’s performance in the quarter to be reported.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s first-quarter net sales is pegged at $782 million, suggesting growth of 11% from the prior-year period. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $173 million, indicating an increase of 10% from the year-ago quarter’s levels. The segment is likely to have witnessed higher foodservice demand on the reopening of restaurants and other public venues, and strong demand for automated equipment solutions.
The Zacks Consensus Estimate for the Protective Packaging segment’s first-quarter net sales is pegged at $606 million, indicating a year-over-year improvement of 7%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA stands at $114 million, suggesting growth of 4% from the year-earlier reported figure. 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 might 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
Image Source: Zacks Investment Research
In the past year, shares of Sealed Air have gained 33% compared with the industry’s growth of 0.7%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other Industrial Products stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases.
Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $4.81 billion for the first quarter of 2022 indicates year-over-year growth of 2.6%.
The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2022 currently stands at $1.60, suggesting year-over-year growth of 11%. ETN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7%.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +0.74% and a Zacks Rank of 2. The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2022 earnings is pegged at $6.65 per share, suggesting 17% growth from the year-ago quarter.
The Zacks Consensus Estimate for its quarterly revenues stands at $13.4 billion, suggesting year-over-year growth of 22.2%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average.
Illinois Tool Works Inc. (ITW - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank #3. The Zacks Consensus Estimate for Illinois Tool’s first-quarter 2022 earnings is currently pegged at $2.07 per share, unchanged in the past 30 days. The projection indicates a 1.9% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Illinois Tool’s quarterly revenues is pegged at $3.7 billion, which indicates a year-over-year improvement of 6.3%. ITW has a trailing four-quarter earnings surprise of 3.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.