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The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.37 billion, suggesting a 2.7% dip from the year-ago reported figure. The consensus estimate for quarterly earnings is pinned at 62 cents per share, indicating a year-over-year decline of 37.4%.
Q3 Performance
Sealed Air’s third-quarter 2023 earnings and sales decreased year over year. However, both the top and the bottom lines beat the Zacks Consensus Estimate. The company has a trailing four-quarter earnings surprise of 9.3%, on average.
What the Zacks Model Indicates
Our model predicts an earnings beat for Sealed Air this time around. 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. That’s precisely the case here.
Earnings ESP: Sealed Air has an Earnings ESP of 3.46%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Sealed Air has been witnessing a downtrend in overall volumes over the past seven reported quarters. This reflects recessionary pressures in the industrial and fulfillment markets. In the Food segment, volumes decreased 0.8% in the third quarter of 2023. This was driven by food retail market declines and the impacts of supply disruptions.
We anticipate these factors, along with customer destocking, to have impacted volumes in the third quarter. Our model projects the Food segment to witness a decline of 1.7% in volumes in the fourth quarter. For the Protective segment, our model indicates a volume decline of 17.6% in the fourth quarter.
Our model estimate for the Food segment’s fourth-quarter net sales is pegged at $930 million, suggesting growth of 6.4% from the prior-year period’s reported figure. The impacts of lower volumes are likely to have been offset by improved pricing (0.8%) and a 9.7% contribution from the recent Liquibox acquisition. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $170 million, indicating a year-over-year fall of 15.9%.
Our estimate for the Protective segment’s fourth-quarter net sales is $433 million, implying a year-over-year fall of 18.7%. This is mainly due to the volume decline, which is likely to have offset pricing growth of 0.6%. Our estimate for the segment’s adjusted EBITDA is pegged at $81 million, suggesting a year-over-year decline of 21%.
Sealed Air’s overall volumes are expected to decline 7.7%, per our model. We expect pricing growth of 0.7% for the quarter and a contribution of 6% from acquisitions. The company’s fourth-quarter performance is likely to have been supported by the sustained demand for packaging of food, beverage and healthcare products, and e-commerce activities.
Savings from the company’s Reinvent SEE Strategy initiatives have been driving productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the December-ended quarter.
Price Performance
In the past year, shares of Sealed Air have lost 25.6% against industry’s 3.2% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some more stocks with the right combination of elements to post an earnings beat in their upcoming releases.
American Eagle Outfitters, Inc. (AEO - Free Report) , expected to release fourth quarter 2023 earnings on Mar 7, has an Earnings ESP of +2.88. It has a trailing four-quarter surprise of 23%, on average.
The Zacks Consensus Estimate for American Eagle Outfitters’ earnings for the fourth quarter is currently pegged at 50 cents. AEO currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco Wholesale Corporation (COST - Free Report) , scheduled to release earnings on Mar 7, has an Earnings ESP of +1.58.
The Zacks Consensus Estimate for Costco Wholesale’s earnings for the fiscal second quarter of 2024 is currently pegged at $3.59. COST currently carries a Zacks Rank #2. It has a trailing four-quarter surprise of 2.6%, on average.
Darden Restaurants, Inc. (DRI - Free Report) , expected to release fiscal third-quarter 2024 earnings soon, currently has an Earnings ESP of +1.11% and a Zacks Rank of 3.
The Zacks Consensus Estimate for DRI’s fiscal third-quarter earnings is pegged at $2.64 per share. The consensus estimate for the company’s quarterly earnings has remained constant in the past 30 days. It has an average trailing four-quarter earnings surprise of 4.2%.
Image: Bigstock
Sealed Air (SEE) to Report Q4 Earnings: What to Expect?
Sealed Air Corporation (SEE - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 27 before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.37 billion, suggesting a 2.7% dip from the year-ago reported figure. The consensus estimate for quarterly earnings is pinned at 62 cents per share, indicating a year-over-year decline of 37.4%.
Q3 Performance
Sealed Air’s third-quarter 2023 earnings and sales decreased year over year. However, both the top and the bottom lines beat the Zacks Consensus Estimate. The company has a trailing four-quarter earnings surprise of 9.3%, on average.
What the Zacks Model Indicates
Our model predicts an earnings beat for Sealed Air this time around. 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. That’s precisely the case here.
Earnings ESP: Sealed Air has an Earnings ESP of 3.46%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote
Key Factors
Sealed Air has been witnessing a downtrend in overall volumes over the past seven reported quarters. This reflects recessionary pressures in the industrial and fulfillment markets. In the Food segment, volumes decreased 0.8% in the third quarter of 2023. This was driven by food retail market declines and the impacts of supply disruptions.
We anticipate these factors, along with customer destocking, to have impacted volumes in the third quarter. Our model projects the Food segment to witness a decline of 1.7% in volumes in the fourth quarter. For the Protective segment, our model indicates a volume decline of 17.6% in the fourth quarter.
Our model estimate for the Food segment’s fourth-quarter net sales is pegged at $930 million, suggesting growth of 6.4% from the prior-year period’s reported figure. The impacts of lower volumes are likely to have been offset by improved pricing (0.8%) and a 9.7% contribution from the recent Liquibox acquisition. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $170 million, indicating a year-over-year fall of 15.9%.
Our estimate for the Protective segment’s fourth-quarter net sales is $433 million, implying a year-over-year fall of 18.7%. This is mainly due to the volume decline, which is likely to have offset pricing growth of 0.6%. Our estimate for the segment’s adjusted EBITDA is pegged at $81 million, suggesting a year-over-year decline of 21%.
Sealed Air’s overall volumes are expected to decline 7.7%, per our model. We expect pricing growth of 0.7% for the quarter and a contribution of 6% from acquisitions. The company’s fourth-quarter performance is likely to have been supported by the sustained demand for packaging of food, beverage and healthcare products, and e-commerce activities.
Savings from the company’s Reinvent SEE Strategy initiatives have been driving productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the December-ended quarter.
Price Performance
In the past year, shares of Sealed Air have lost 25.6% against industry’s 3.2% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some more stocks with the right combination of elements to post an earnings beat in their upcoming releases.
American Eagle Outfitters, Inc. (AEO - Free Report) , expected to release fourth quarter 2023 earnings on Mar 7, has an Earnings ESP of +2.88. It has a trailing four-quarter surprise of 23%, on average.
The Zacks Consensus Estimate for American Eagle Outfitters’ earnings for the fourth quarter is currently pegged at 50 cents. AEO currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco Wholesale Corporation (COST - Free Report) , scheduled to release earnings on Mar 7, has an Earnings ESP of +1.58.
The Zacks Consensus Estimate for Costco Wholesale’s earnings for the fiscal second quarter of 2024 is currently pegged at $3.59. COST currently carries a Zacks Rank #2. It has a trailing four-quarter surprise of 2.6%, on average.
Darden Restaurants, Inc. (DRI - Free Report) , expected to release fiscal third-quarter 2024 earnings soon, currently has an Earnings ESP of +1.11% and a Zacks Rank of 3.
The Zacks Consensus Estimate for DRI’s fiscal third-quarter earnings is pegged at $2.64 per share. The consensus estimate for the company’s quarterly earnings has remained constant in the past 30 days. It has an average trailing four-quarter earnings surprise of 4.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnigs Calendar.