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The Zacks Consensus Estimate for the second-quarter revenues is pegged at $1.45 billion, suggesting growth of 8.8% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 98 cents per share, indicating year-over-year growth of 24%.
Q1 Performance
Sealed Air’s first-quarter 2022 earnings and sales increased year over year. The company beat the Zacks Consensus Estimate on both metrics. The company has a trailing four-quarter earnings surprise of 5.9%, on average.
Our proven model does not 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, but that is not the case here.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Sealed Air has an Earnings ESP of -2.41%.
Sealed Air’s second-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging 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 announced 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 now embedded in the company’s ongoing productivity improvement system, SEE Operating Engine. Savings from these initiatives might have driven the operating margin performance in the June-ended quarter.
However, SEE has been encountering supply chain disruptions, higher raw material costs as well as 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 for innovation and automation, which might have weighed on its margins.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s second-quarter net sales is pegged at $821 million, suggesting growth of 11% from the prior-year period. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $186 million, indicating an increase of 18% from the year-ago quarter’s levels. The segment’s results are likely to reflect the ongoing recovery in food service demand and a strong need for automated equipment solutions.
The Zacks Consensus Estimate for the Protective Packaging segment’s second-quarter net sales is pegged at $618 million, indicating a year-over-year improvement of 4%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA stands at $113 million, suggesting growth of 6% from the year-earlier reported figure. The segment’s medical and life sciences portfolio continues to gain from strong demand for medical supplies, pharmaceuticals and personal protective equipment coupled with higher demand for temperature assurance packaging solutions.
Sustained growth in e-commerce and fulfillment and higher demand in the industrial-end markets might have favored the segment’s to-be-reported quarter’s performance.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Sealed Air have gained 8.4% compared with the industry’s growth of 2.2%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Product stocks that you may consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global Inc. (MRC - Free Report) currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%. MRC has a trailing four-quarter earnings surprise of 140.8%, on average.
The Zacks Consensus Estimate for MRC’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.
Eaton (ETN - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.82 per share, suggesting a 5.8% increase from the last-year quarter.
The Zacks Consensus Estimate for quarterly revenues stands at $5.23 billion, indicating year-over-year growth of 0.2%. ETN has a trailing four-quarter earnings surprise of 3.5%, on average.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +2.50% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings has gone up in the past 30 days and is currently at 20 cents per share. The estimate suggests an 11% year-on-year growth.
The Zacks Consensus Estimate for Mueller Water quarterly revenues is pegged at $334.6 million, which indicates a year-over-year improvement of 7.8%. MWA has a trailing four-quarter earnings surprise of 9.5%, on average.
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Sealed Air (SEE) to Report Q2 Earnings: What to Expect?
Sealed Air Corporation (SEE - Free Report) is scheduled to report second-quarter 2022 results on Aug 2, before the opening bell.
Q2 Estimates
The Zacks Consensus Estimate for the second-quarter revenues is pegged at $1.45 billion, suggesting growth of 8.8% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 98 cents per share, indicating year-over-year growth of 24%.
Q1 Performance
Sealed Air’s first-quarter 2022 earnings and sales increased year over year. The company beat the Zacks Consensus Estimate on both metrics. The company has a trailing four-quarter earnings surprise of 5.9%, 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 does not 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, but that is not the case here.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Sealed Air has an Earnings ESP of -2.41%.
Zacks Rank: It currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Note
Sealed Air’s second-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging 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 announced 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 now embedded in the company’s ongoing productivity improvement system, SEE Operating Engine. Savings from these initiatives might have driven the operating margin performance in the June-ended quarter.
However, SEE has been encountering supply chain disruptions, higher raw material costs as well as 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 for innovation and automation, which might have weighed on its margins.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s second-quarter net sales is pegged at $821 million, suggesting growth of 11% from the prior-year period. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $186 million, indicating an increase of 18% from the year-ago quarter’s levels. The segment’s results are likely to reflect the ongoing recovery in food service demand and a strong need for automated equipment solutions.
The Zacks Consensus Estimate for the Protective Packaging segment’s second-quarter net sales is pegged at $618 million, indicating a year-over-year improvement of 4%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA stands at $113 million, suggesting growth of 6% from the year-earlier reported figure. The segment’s medical and life sciences portfolio continues to gain from strong demand for medical supplies, pharmaceuticals and personal protective equipment coupled with higher demand for temperature assurance packaging solutions.
Sustained growth in e-commerce and fulfillment and higher demand in the industrial-end markets might have favored the segment’s to-be-reported quarter’s performance.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Sealed Air have gained 8.4% compared with the industry’s growth of 2.2%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Product stocks that you may consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global Inc. (MRC - Free Report) currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%. MRC has a trailing four-quarter earnings surprise of 140.8%, on average.
The Zacks Consensus Estimate for MRC’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.
Eaton (ETN - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.82 per share, suggesting a 5.8% increase from the last-year quarter.
The Zacks Consensus Estimate for quarterly revenues stands at $5.23 billion, indicating year-over-year growth of 0.2%. ETN has a trailing four-quarter earnings surprise of 3.5%, on average.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +2.50% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings has gone up in the past 30 days and is currently at 20 cents per share. The estimate suggests an 11% year-on-year growth.
The Zacks Consensus Estimate for Mueller Water quarterly revenues is pegged at $334.6 million, which indicates a year-over-year improvement of 7.8%. MWA has a trailing four-quarter earnings surprise of 9.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.