Sealed Air Corporation
) attained a new 52-week high of $25.58 on Friday, Jul 5, 2013.
The new high was primarily driven by expected benefits from its
acquisition of Diversey, cost savings and the appointment of
Jerome A. Peribere as the President and Chief Executive Officer.
This specialty packaging service provider has delivered a robust
one-year return of about 66.32% and year-to-date return of about
47.64%. Average volume of shares traded over the last three
months was approximately 1.9 million shares.
This Zacks Rank #3 (Hold) stock has a market cap of $5 billion
and a long-term expected earnings growth rate of 15.97%.
Sealed Air's Strengths
Sealed Air's acquisition of Diversey has expanded its presence
beyond specialty packaging solutions. This combination is
expected to further enhance Sealed Air's earnings per share and
free cash flow generation.
The company's ongoing Integration & Optimization Program to
address the increasing macroeconomic weakness and realize
additional cost reduction opportunities will generate cost
savings and benefits of approximately $195 million to $200
million by the end of 2014.
1Q13 Earnings Miss, But Improved Outlook
Sealed Air reported first-quarter 2013 adjusted net earnings from
continuing operations of 17 cents per share, up 6% from the
year-ago earnings of 16 cents per share but a penny short of the
Zacks Consensus Estimate. Volumes improved 1% and a positive 0.2%
price/mix was offset by unfavorable foreign currency translation
For fiscal 2013,the company expects adjusted earnings in the
range of $1.10 to $1.20 per share on the back of net sales in the
range of $7.7 to $7.9 billion. Adjusted EBITDA is expected in the
range of $1.01 to $1.03 billion. Furthermore, free cash flow is
expected in the range of $300-$350 million.
During its first quarter conference call, Sealed Air announced an
earnings quality improvement plan intended at delayering
management in a bid to make the company more cost efficient,
especially in Europe. The plan is expected to result in
annualized savings of approximately $80 million by the end of
2015 for an estimated total cost in the range of $180 to $200
million. Savings for 2013 are expected to be minimal and one-time
cash costs for 2013 are estimated to be approximately $65
The Zacks Consensus Estimate for 2013 is currently pegged at
$2.78 per share, reflecting a 5.23% year-over-year increase and
within the company's guidance.
Other Stocks to Consider
Other stocks in the industry that are currently performing well
and have a good visibility include
Mobile Mini, Inc.
), with a Zacks Rank #1 (Strong Buy), and
Berry Plastics Group, Inc.
), with a Zacks Rank # 2 (Buy).
BERRY PLASTICS (BERY): Free Stock Analysis
MOBILE MINI INC (MINI): Free Stock Analysis
ROCK-TENN CO (RKT): Free Stock Analysis
SEALED AIR CORP (SEE): Free Stock Analysis
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