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Container Stock Earnings Roster for Feb 9: SEE, ATR, SON

So far the fourth quarter is showing promise with earnings set to attain the highest level in eight quarters. Further, it will post positive earnings growth for the second consecutive quarter after five quarters of back-to-back declines.

The earnings growth graph so far has been encouraging in this quarter with total 55% of the companies in the S&P 500 logging growth of 6.9%. Taking into consideration the estimates from the still-to-come 225 index members, total earnings in the quarter are now expected to be up 6.8% year over year on the back of 3.9% higher revenues. (Read more: All-Time Record Earnings in Q4 ).

The Containers-Paper and Packaging, Containers-Metal, Glass industry fall under the Industrial Products sector - one of the 16 broader Zacks sectors. The industrial products sector is one of the 12 sectors that are expected to log positive growth in this quarter. The industrial products sector has a projected growth of 4% for the fourth quarter driven by a 4.1% rise in revenues, owing to increased capital investment in the infrastructure market. So far 72.7% of the companies (74.6% of the total market capitalization) have reported in the sector. Given that these companies have put up an earnings growth of 11.8% on the scoreboard, the sector seems on track to achieve the projected numbers.

Let's take a sneak peek at three major packaging container providers to see how things are shaping up for the upcoming fourth-quarter 2016 results scheduled to be announced on Feb 9.

Major specialty packaging service provider to a diverse set of end markets, Sealed Air CorporationSEE is scheduled to report fourth-quarter 2016 results. In the last reported quarter, the company's adjusted earnings inched up 1% while revenues declined 1.7%, both on a year-over-year basis.

Sealed Air's fourth-quarter is likely to be the strongest quarter of the year, with organic sales growth of approximately 3%. Growth in the quarter will be primarily driven by accelerated volume in both Food Care and Product Care. Sealed Air expects improved performance in both top line and bottom line in the fourth quarter, owing to consistent efforts to build a robust pipeline for its innovative solutions and capitalize on end market growth opportunities. (Read More: Sealed Air to Report Q4 Earnings: What's in the Cards? )

Sealed Air Corporation Price and EPS Surprise

Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote

In the last reported quarter, the company posted a positive earnings surprise of 1.43%. Sealed Air has beaten estimates in each of the trailing four quarters, with an average positive earnings surprise of 14.79%.

In the last three months, Sealed Air has underperformed the Zacks classified Containers-Paper/Plastic sub industry with respect to price performance. While the stock gained 5.8%, the industry recorded growth of 6.9%, in the same time frame.

Our proven model does not conclusively show that Sealed Air is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Though Sealed Air's Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. You can see the complete list of today's Zacks #1 Rank stocks here .

AptarGroup, Inc.ATR , which sells packaging, dispensing, and sealing solutions to the beauty, food and beverage markets, is scheduled to report its fourth-quarter results 2016.

AptarGroup, Inc. Price and EPS Surprise

AptarGroup, Inc. Price and EPS Surprise | AptarGroup, Inc. Quote

In the last reported quarter, the company posted a negative earnings surprise of 1.20%. AptarGroup has beaten estimates in two of the trailing four quarters, with an average positive earnings surprise of 0.80%.

In the last three months, AptarGroup has underperformed the Zacks classified Containers-Paper/Plastic sub industry with respect to price performance. The stock has increased 5.8% over the said timeframe while the industry witnessed growth of 6.9%.

For the fourth quarter, AptarGroup guides earnings in the range of 63-68 cents per share. The company does not expect any significant change in the macroeconomic conditions or the cautionary spending activity of customers this year. Further, the fourth quarter is traditionally a slower quarter and resin costs are anticipated to be higher.

The combination of AptarGroup's Zacks Rank #4 (Sell) and Earnings ESP of -1.52% makes an earnings beat unlikely this quarter.

Sonoco Products CompanySON is also scheduled to report fourth-quarter 2016 earnings. In the last reported quarter, Sonoco's earnings increased 11% year over year despite a 2.7% dip in revenues.

Sonoco Products Company Price and EPS Surprise

Sonoco Products Company Price and EPS Surprise | Sonoco Products Company Quote

In the last quarter, Sonoco beat the Zacks Consensus Estimate by 5.88%. The company has an impressive record of earnings surprises, beating the Zacks Consensus Estimate in all the four quarters, with an average positive earnings surprise of 5.79%.

In the past three months, Sonoco has underperformed the Zacks categorized Containers-Paper/Plastic industry. Sonoco has gained 6.8% over the said time period while the Zacks industry has increased 6.9%.

For the fourth quarter, Sonoco expects EPS in the range of 60-65 cents, a 4% year-over-year decline at the mid-point due to seasonality and fewer business days. This year's fourth-quarter has five fewer accounting days, which includes four fewer business days.

Sonoco's Zacks Rank #4 and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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