Sealed Air Corporation (SEE) is a global leader in performance solutions for food, protective and specialty packaging. It offers a wide range of differentiated products to a diverse set of markets.
Sealed Air, like other packaging companies stands to benefit from the recent slump in oil prices. Cheaper oil means lower gasoline prices. This, along with an improving employment scenario, will lead to a positive turn in consumer spending patterns and improve packaging demand, thereby facilitating Sealed Air's growth.
Despite anticipated volume declines in the protein market in North America and currency headwinds in the fourth quarter, Sealed Air remains on track to deliver EBITDA growth and margin expansion for the full year 2014. The company is also expected to benefit from cost savings from its ongoing Integration & Optimization Program as well as its recent additional restructuring plan.
Investors have been thus eagerly waiting for the fourth quarter earnings release of this Elmwood Park, N.J. based packaging company. Let’s have a quick look at its fourth quarter earnings results.
Estimate Trend & Surprise History: Investors should note that the earnings estimate for Sealed Air for the fourth quarter has been stationary over the past week and month. The Zacks Consensus Estimate has remained static at 47 cents over these periods.
As regards earnings surprise in the past 4 quarters, Sealed Air has outpaced the Zacks Consensus Estimate on three occasions, with an average beat of 13.24%.
Earnings: Sealed Air beat on earnings by a margin of 26% despite currency headwinds in the quarter. Our consensus called for earnings per share (EPS) of 47 cents, and the company reported adjusted EPS of 59 cents.
Revenue: Sealed Air however missed on revenues. It reported fourth quarter fiscal 2014 revenues of $1,974 million, falling short of the Zacks Consensus Estimate of $1,987 million.
Key Developments to Note: Sealed Air expects adjusted earnings per share to range between $2.08 and $2.18 in fiscal 2015. Compared to the adjusted earnings of $1.86 in fiscal 2014, this reflects annual growth of 12% to 17%. The company projects net sales to be approximately $7.4 billion for 2015.
Zacks Rank: Currently Sealed Air has a Zacks Rank #2 (Buy). 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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