We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sealed Air (SEE) Q4 Earnings & Revenue Top Estimates, Up Y/Y
Read MoreHide Full Article
Sealed Air Corporation (SEE - Free Report) delivered fourth-quarter 2018 adjusted earnings per share of 75 cents surpassing the Zacks Consensus Estimate of 67 cents and also surging 29% year over year.
Including special items, the company reported net earnings per share of $1.28, up from 14 cents in the year-ago quarter.
Total revenues increased 2.6% year over year on a reported basis to 1,260 million in the reported quarter. The figure outpaced the Zacks Consensus Estimate of $1,114 million. Unfavorable currency impact lowered total net sales by $48 million or 4%.
Sealed Air Corporation Price, Consensus and EPS Surprise
Cost of sales edged up 0.7% year over year to $861 million. Gross profit improved 7% to $399 million. Gross margin expanded 140 basis points (bps) to 31.7% in the fourth quarter.
SG&A expenses fell roughly 2% to $203 million from the prior-year quarter’s figure. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $248 million in the quarter compared with $238 million in the prior-year quarter. Adjusted EBITDA margin was 19.7% compared with 19.4% in the prior-year quarter.
Segment Performance
Food Care: Net sales rose 1% year over year to $772 million. Adjusted EBITDA increased 12% year over year to $162 million.
Product Care: The segment reported net sales of $489 million, up 5% year over year. Adjusted EBITDA increased 5% to $85 million.
Financial Updates
Cash and cash equivalents were $272 million as of Dec 31, 2018, down from $594 million as of Dec 31, 2017. Cash flow from operating activities was around $428 million in 2018 compared with $424 million in 2017.
As of Dec 31, 2018, Sealed Air’s net debt came in at $3.2 billion, up from $2.7 billion as of Dec 31, 2017.
In, 2018, the company repurchased around 14.9 million shares for $583 million. Sealed Air has $775 million remaining under its current authorized share repurchase program. During the year, the company paid dividends worth $104 million.
2018 Results
Sealed Air reported adjusted earnings per share of $2.50 in 2018, up 38% from $1.81 in the prior year. Earnings surpassed the Zacks Consensus Estimate of $2.43. Sales increased 6% year over year to $4.73 billion, coming ahead of the Zacks Consensus Estimate of $4.72 billion.
Guidance
Sealed Air projects adjusted earnings per at $2.65-$2.75 in fiscal 2019. Net sales growth is projected to be approximately 2% on reported basis and 5% in constant dollars. Adjusted EBITDA from continuing operations is expected to be $925-$945 million. Currency is expected to have an unfavorable impact of approximately $130 million on net sales and $25 million on adjusted EBITDA.
Price Performance
Shares of Sealed Air have slumped 8.5% in the past year compared with the industry’s decline of 6.4%.
Other top-ranked stocks in the Industrial Products sector are Axon Enterprise, Inc , Alarm.com Holdings, Inc. (ALRM - Free Report) and EnerSys (ENS - Free Report) . While Axon and Alarm.com currently flaunt a Zacks Rank #1, EnerSys carries a Zacks Rank #2.
Axon has expected earnings growth rate of 14.5% for 2019. The company’s shares have soared 101.6% in the past year.
Alarm.com has expected earnings growth rate of 7.8% for 2019. The stock has surged 72% in a year’s time.
EnerSys has expected earnings growth rate of 9.5% for 2019. Its shares have gained 33% in the past year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Sealed Air (SEE) Q4 Earnings & Revenue Top Estimates, Up Y/Y
Sealed Air Corporation Price, Consensus and EPS Surprise
Sealed Air Corporation price-consensus-eps-surprise-chart | Sealed Air Corporation Quote
Cost and Margins