Sealed Air Corporation (SEE - Free Report) delivered second-quarter 2019 adjusted earnings per share of 80 cents, surpassing the Zacks Consensus Estimate of 64 cents and improving 25% year over year. Results can be attributed to strong execution of the company’s Reinvent SEE strategy which was introduced in December 2018 to drive growth and earnings power.
Including special items, the company reported net earnings per share of 16 cents compared to the prior-year quarter’s 52 cents.
Total revenues went up to $1,161 million in the reported quarter from the year-ago quarter’s $1,155 million. The figure, however, missed the Zacks Consensus Estimate of $1,167 million. Unfavorable currency impact lowered total net sales by $41 million.
Cost and Margins
Cost of sales edged down 1.1% year over year to $782.7 million. Gross profit improved 4% year over year to $378.3 million. Gross margin came in at 32.6% compared with 31.4% in the comparable period last year.
SG&A expenses flared up 38% to $266.2 million, year on year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $237 million in the quarter compared with $218 million reported in the prior-year quarter. Adjusted EBITDA margin was 20% compared with 19% in the prior-year quarter, driven by the company’s Reinvent SEE initiatives, productivity improvement and restructuring savings, partly offset by higher operating costs.
Sealed Air Corporation Price, Consensus and EPS Surprise