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Sealed Air (SEE) Q4 Earnings Beats By a Penny, Sales Lag
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Sealed Air Corporation (SEE - Free Report) is a major specialty packaging service provider catering to a diverse set of end markets. The company operates in the United States as well as globally with packaging and performance-based materials and equipment systems serving food, medical, and an array of industrial and consumer.
Sealed Air’s top line will be supported by enhanced demand for its core product portfolio, recently-introduced innovations, and accelerated growth in the global protein market along with the eCommerce sector. However, unfavorable foreign currency is expected to continue to impact its results. Nevertheless, the fourth quarter is expected to be the strongest quarter of the year with organic sales growth of approximately 3%. Growth in the quarter will be primarily driven by accelerated volume in both Food Care and Product Care.
Investors have been thus eagerly waiting for the third quarter earnings release of this Elmwood Park, N.J. based packaging company. Let’s have a quick look at its earnings results.
Estimate Trend & Surprise History: Investors should note that the earnings estimate for Sealed Air for the fourth quarter depicted a neutral stance prior to the fourth quarter earnings release. There was no movement in estimates over the past month and the Zacks Consensus Estimate is currently pegged at 75 cents.
As regards earnings surprise, Sealed Air has an impressive track record. The company has outpaced the Zacks Consensus Estimate in all the past four quarters, with an average beat of 14.79%.
Earnings: Sealed Air beat on earnings by a margin of 1%. Our consensus called for earnings per share (EPS) of 75 cents, and the company reported adjusted EPS of 76 cents.
Revenue: Sealed Air however missed on revenues. It reported fourth quarter revenues of $1,744 million, falling short of the Zacks Consensus Estimate of $1.78 billion.
Key Developments to Note: For 2017, Sealed Air expects sales to be flat compared to 2016 including an unfavorable impact of approximately 3% from foreign currency translation. Adjusted for unfavorable currency, net sales in 2017 will increase approximately 2.5% year over year. Adjusted EBITDA is estimated to be approximately $1.18 billion and adjusted EPS is expected to be around $2.70 per share, which assumes approximately $0.14 per share of unfavorable currency translation.
Zacks Rank: Currently Sealed Air has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on this Sealed Air earnings report later!
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Sealed Air (SEE) Q4 Earnings Beats By a Penny, Sales Lag
Sealed Air Corporation (SEE - Free Report) is a major specialty packaging service provider catering to a diverse set of end markets. The company operates in the United States as well as globally with packaging and performance-based materials and equipment systems serving food, medical, and an array of industrial and consumer.
Sealed Air’s top line will be supported by enhanced demand for its core product portfolio, recently-introduced innovations, and accelerated growth in the global protein market along with the eCommerce sector. However, unfavorable foreign currency is expected to continue to impact its results. Nevertheless, the fourth quarter is expected to be the strongest quarter of the year with organic sales growth of approximately 3%. Growth in the quarter will be primarily driven by accelerated volume in both Food Care and Product Care.
Investors have been thus eagerly waiting for the third quarter earnings release of this Elmwood Park, N.J. based packaging company. Let’s have a quick look at its earnings results.
Estimate Trend & Surprise History: Investors should note that the earnings estimate for Sealed Air for the fourth quarter depicted a neutral stance prior to the fourth quarter earnings release. There was no movement in estimates over the past month and the Zacks Consensus Estimate is currently pegged at 75 cents.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote
As regards earnings surprise, Sealed Air has an impressive track record. The company has outpaced the Zacks Consensus Estimate in all the past four quarters, with an average beat of 14.79%.
Earnings: Sealed Air beat on earnings by a margin of 1%. Our consensus called for earnings per share (EPS) of 75 cents, and the company reported adjusted EPS of 76 cents.
Revenue: Sealed Air however missed on revenues. It reported fourth quarter revenues of $1,744 million, falling short of the Zacks Consensus Estimate of $1.78 billion.
Key Developments to Note: For 2017, Sealed Air expects sales to be flat compared to 2016 including an unfavorable impact of approximately 3% from foreign currency translation. Adjusted for unfavorable currency, net sales in 2017 will increase approximately 2.5% year over year. Adjusted EBITDA is estimated to be approximately $1.18 billion and adjusted EPS is expected to be around $2.70 per share, which assumes approximately $0.14 per share of unfavorable currency translation.
Zacks Rank: Currently Sealed Air has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on this Sealed Air earnings report later!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>