It has been about a month since the last earnings report for Sealed Air (SEE Quick QuoteSEE - Free Report) . Shares have added about 16.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Sealed Air due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Sealed Air Corporation before we dive into how investors and analysts have reacted as of late.

Sealed Air Earnings & Sales Surpass Estimates in Q3, Increase Y/Y

Sealed Air has reported third-quarter 2025 adjusted earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate of 68 cents. The bottom line increased 10.1% year over year on improved operating leverage.

Including special items, the company delivered EPS from continuing operations of $1.26 compared with the year-ago quarter’s 61 cents.

Sealed Air’s Sales Dip Y/Y

Total sales were $1.35 billion, which beat the Zacks Consensus Estimate of $1.31 billion. The figure rose 0.5% year over year.

Pricing had unfavorable impacts of 1%. Volumes declined 1% year over year. Our model predicted an unfavorable impact of 0.4% from pricing and a year-over-year volume decline of 2.9%.

SEE’s Q3 Gross Margins Dip Y/Y

The cost of sales inched up 0.8% year over year to $951 million. The gross profit was $400 million, which marked a 0.3% dip from the year-ago quarter’s $401 million. The gross margin was 29.6%, a marginal contraction from the year-ago quarter’s 29.8%.

SG&A expenses were $175 million, down 6.3% from the year-ago quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $287.5 million, up 4.2% from the year-ago period. The adjusted EBITDA margin was 21.3%, up from the prior-year quarter’s 20.5%.

Sealed Air’s Segment Performances in Q3

Food: Net sales increased 1% year over year to $910 million. Pricing actions had a favorable impact of 1%, while volumes declined 1%, reflecting softness in the North America market. Foreign currency had a favorable impact of 1%. Adjusted EBITDA was around $215 million, up 4% from the last-year quarter, aided by productivity benefits and cost reductions.

Protective: The segment reported net sales of $442 million, down 1% from the year-ago quarter. Pricing had a negative impact of 1% and volumes fell 2% year over year due to the ongoing weakness in industrial portfolios. The segment’s adjusted EBITDA increased 3% year over year to $75 million, driven by productivity benefits and cost reductions.

SEE’s Cash Flow & Balance Sheet Updates

Cash flow generated from operating activities was around $334 million in the first nine months of 2025 compared with $484 million in the year-ago period.

As of Sept. 30, 2025, Sealed Air’s total debt was $4.17 billion compared with $4.40 billion as of Dec. 31, 2024. As of the end of the third quarter, the company had $1.3 billion in liquidity available, which comprised $282 million in cash and $994 million in undrawn, committed credit facilities.

Sealed Air Updates 2025 Guidance

SEE expects net sales of $5.275-$5.325 billion. This compares to the previously provided guidance of $5.10-$5.50 billion.

Adjusted EBITDA is projected at $1.120-$1.140 billion for 2025, updated from the prior mentioned $1.075-$1.175 billion. Adjusted earnings per share are forecast at $3.25-$3.35, increased from the previously stated $2.90-$3.30. The free cash flow for the year is expected to be $350-$450 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

At this time, Sealed Air has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Sealed Air has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Sealed Air belongs to the Zacks Containers - Paper and Packaging industry. Another stock from the same industry, Sonoco (SON Quick QuoteSON - Free Report) , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Sonoco reported revenues of $2.13 billion in the last reported quarter, representing a year-over-year change of +27.2%. EPS of $1.92 for the same period compares with $1.49 a year ago.

Sonoco is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of -12%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.1%.

Sonoco has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.