Sealed Air CorporationSEE is a major specialty packaging service provider catering to a diverse set of end markets. The company operates in the United States as well as globally with packaging and performance-based materials and equipment systems serving food, medical, and an array of industrial and consumer.
Sealed Air expects stronger performance in the second half to be supported by enhanced demand for core product portfolio, recently-introduced innovations, accelerated growth in the global protein market and e-Commerce sector. However, political unrest in the Middle East and weak resin prices remain headwinds. In addition, increased R&D, sales and marketing expenses will affect margins in the near term. Nevertheless going forward, acquisitions, savings from restructuring and further share repurchases will aid growth. Recently, Sealed Air announced a plan to pursue the tax-free spin-off of its Diversey Care division and the food hygiene and cleaning business within its Food Care division
Investors have been thus eagerly waiting for the third quarter earnings release of this Elmwood Park, N.J. based packaging company. Let's have a quick look at its earnings results.
Estimate Trend & Surprise History : Investors should note that the earnings estimate for Sealed Air for the third quarter depicted a neutral stance prior to the third quarter earnings release. There was no movement in estimates over the past month and the Zacks Consensus Estimate is currently pegged at 70 cents.
As regards earnings surprise, Sealed Air has an impressive track record. The company has outpaced the Zacks Consensus Estimate in all the past four quarters, with an average beat of 20.14%.
SEALED AIR CORP Price and EPS Surprise
Earnings : Sealed Air beat on earnings by a margin of 1%. Our consensus called for earnings per share (EPS) of 70 cents, and the company reported adjusted EPS of 71 cents.
Revenue : Sealed Air however missed on revenues. It reported third quarter revenues of $1,717 million, falling short of the Zacks Consensus Estimate of $1,747 million.
Key Developments to Note : For 2016, Sealed Air expects adjusted EPS to be around $2.60 on the back of revenues of $6.8 billion. Adjusted EBITDA is projected at approximately $1.17 billion. Currency will have a negative impact of approximately $225 million on sales and $35 million on Adjusted EBITDA.
Zacks Rank : Currently Sealed Air has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on this Sealed Air earnings report later!
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