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Sealed Air (SEE) Q2 Earnings Lags, Revenues Beat Estimates


Sealed Air Corporation SEE 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 applications.

Sealed Air will benefit from enhanced demand for its core product portfolio and the recently introduced innovations. Accelerated growth in the global protein market along with the eCommerce sector also remains tailwinds. However, unfavorable foreign will impact its results.

Investors have been thus eagerly waiting for the second 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: The investors should note that the earnings estimate for Sealed Air for the second quarter has remained stable over the past month. The Zacks Consensus Estimate is currently pegged at 36 cents.

Sealed Air Corporation Price and EPS Surprise

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

As regards earnings surprise, Sealed Air has outpaced the Zacks Consensus Estimate in three of the past four quarters. The company has an average negative earnings surprise of 0.55%.

Earnings: Sealed Air missed on earnings by a margin of 3%. Our consensus called for earnings per share (EPS) of 36 cents, and the company reported adjusted EPS of 35 cents.

Revenue: Sealed Air however beat on revenues. It reported second quarter revenues of $1.07 billion, ahead of the Zacks Consensus Estimate of $1.064 billion.

Key Developments to Note: For the full year 2017, Sealed Air expects sales of $4.3 billion compared to $4.2 billion for the full year 2016. The guidance reflects an expected 3% constant dollar sales growth in Food Care and 3-4% constant dollar sales growth in Product Care. Currency is not expected to have a material impact on sales. Adjusted EBITDA is estimated to be approximately be in the range of $825 million to $835 million Adjusted EPS is expected to be in the range of $1.75-$1.80 for 2017.

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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