Yahoo Finance Sealed Air (SEE) to Report Q1 Earnings: What's in Store?
Sealed Air Corporation SEE is scheduled to report first-quarter 2023 results on May 2, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.36 billion, suggesting a fall of 4.7% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings is pinned at 77 cents per share, indicating a year-over-year decline of 31.2%.
Q4 Performance
Sealed Air’s fourth-quarter 2022 earnings and sales decreased year over year. Earnings beat the Zacks Consensus Estimate, whereas revenues missed the same. The company has a trailing four-quarter earnings surprise of 8.4%, on average.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Sealed Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: Sealed Air has an Earnings ESP of -0.43%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
Sealed Air’s Food segment’s performance is likely to have been impacted by food retail market declines across the Americas and EMEA regions, and the adverse impacts of prior supply disruptions. The Protective segment’s margin is expected to have fallen due to recessionary pressures in the industrial and fulfillment markets.
However, the company’s first-quarter performance is likely to have gained from the sustained demand for packaging of food, beverage and healthcare products, and e-commerce activities. Around 63% of the company’s revenues are generated from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute nearly 11%.
In December 2018, Sealed Air set forth a reformation plan called Reinvent SEE Strategy, along with a fresh restructuring program to boost growth and earnings. The strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer service enhancements. The capabilities, operational disciplines and governance processes established through the Reinvent SEE business transformation are embedded in the company’s ongoing productivity improvement system, SEE Operating Engine.
Savings from these initiatives have been aiding the company in delivering sales growth and productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the March-ended quarter.
However, SEE has been encountering supply-chain disruptions, higher raw material costs and elevated freight costs associated with the sourcing and movement of raw materials due to overall tight market conditions. These factors are likely to have impacted its margin performance in the to-be-reported quarter. The company has been increasing its R&D investments in innovation and automation, which are anticipated to have weighed on its margins.
Segmental Estimates
The Zacks Consensus Estimate for the Food segment’s first-quarter net sales is pegged at $851 million, suggesting growth of 21.2% from the prior-year period’s reported figure. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $196 million, indicating a year-over-year decline of 2%.
The Zacks Consensus Estimate for the Protective Packaging segment’s first-quarter net sales is pegged at $510 million, indicating a year-over-year fall of 9.7%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA is pinned at $97 million, suggesting a year-over-year decline of 23.6%.
Price Performance
In the past year, shares of Sealed Air have lost 28.5% compared to the industry’s fall of 3.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Ingersoll Rand Inc. IR is scheduled to report first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and currently sports a Zacks Rank #1. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 52 cents per share. This suggests year-over-year growth of 6.1%.
The Zacks Consensus Estimate for IR’s quarterly revenues is pegged at $1.5 billion, indicating year-over-year growth of 10.7%. IR has a trailing four-quarter earnings surprise of 8.5%, on average.
A. O. Smith Corporation AOS is set to release its first-quarter 2023 results on Apr 27. AOS currently has an Earnings ESP of +5.78% and a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 77 cents per share, suggesting no year-over-year change.
The Zacks Consensus Estimate for AOS’ quarterly revenues is pegged at $913 million, indicating a year-over-year decline of 6.5%. The company has a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works ITW is scheduled to report first-quarter 2023 results on May 2. The company currently has an Earnings ESP of +1.49% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.19 per share. This suggests year-over-year growth of 3.8%
The Zacks Consensus Estimate for quarterly revenues is pegged at $4 billion, indicating growth of 0.6% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 0.9%, on average.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Sealed Air Corporation (SEE) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
