Sealed Air Corporation (SEE - Free Report) reported second-quarter 2017 adjusted earnings per share of 35 cents, down 5.4% year over year. Earnings also missed the Zacks Consensus Estimate of 36 cents.
Including special items, the company posted earnings of 14 cents per share, compared with earnings of a cent recorded in the year-ago quarter.
Total revenue increased 3% year over year on a reported basis to $1.07 billion in the quarter. Revenues beat the Zacks Consensus Estimate of $1.064 billion. Currency had a negative impact on total net sales of 0.7% or $7 million. As reported, net sales North America increased 9%. However, Asia Pacific sales declined 2% while Latin America and EMEA declined 4% each.
Cost and Margins
Cost of sales went up 5.3% year over year to $726 million. Gross profit dipped 2% to $344.3 million. Gross margin contracted 150 basis points (bps) to 32.2% in the quarter.
SG&A expenses increased 2% to $201.8 million from the prior-year period. Adjusted earnings before interest, taxes and $196 million compared with $194 million in the prior-year quarter. Adjusted EBITDA margin was 18.3% compared with18.6% in the prior-year quarter.
Sealed Air Corporation Price, Consensus and EPS Surprise