Sealed Air (SEE) to Report Q4 Earnings: What's in the Cards?

Sealed Air CorporationSEE is scheduled to report fourth-quarter 2016 results before the opening bell on Feb 9. In the last reported quarter, adjusted earnings outperformed the Zacks Consensus Estimate by a penny.

Sealed Air has beaten estimates in each of the trailing four quarters, with an average positive earnings surprise of 14.79%. Let's see how things are shaping up for this announcement.

Key Factors

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 its top and bottom line in the fourth quarter, driven by its consistent efforts to build a robust pipeline for its innovative solutions and capitalize on end market growth opportunities.

Moreover, the company is likely to gain from its acquisitions, focus on growth opportunities, effective cost management and savings from restructuring. However, unfavorable foreign currency translation, increase in restructuring costs and enhanced debt levels remain headwinds for the company.

Sealed Air Corporation Price and EPS Surprise

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

Share Price Performance

In the last one year, Sealed Air has underperformed the Zacks classified Containers-Paper/Plastic sub industry with respect to price performance. While the stock gained 25.9%, the industry recorded growth of 35.5%, over the same time frame.

Earnings Whispers

Our proven model does not conclusively show that Sealed Air is likely to beat earnings this quarter as it lacks the key components. 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. This is not the case here as you will see below:

Zacks ESP: The Earnings ESP for Sealed Air is 0.00%. This is because the Most Accurate estimate of 75 cents is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Sealed Air currently carries Zacks Rank #3. Although this increases the predictive power of ESP, the company's 0.00% ESP makes an earnings prediction uncertain.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Fairmount Santrol Holdings Inc. FMSA has a positive Earnings ESP of +11.11% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Cintas Corp. CTAS has an Earnings ESP of +0.94% and a Zacks Rank #2.

AGCO Corp. AGCO has an Earnings ESP of +5.63% and a Zacks Rank #3.

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Sealed Air Corporation (SEE): Free Stock Analysis Report

Cintas Corporation (CTAS): Free Stock Analysis Report

AGCO Corporation (AGCO): Free Stock Analysis Report

Fairmount Santrol Holdings Inc. (FMSA): Free Stock Analysis Report

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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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