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The Zacks Consensus Estimate for the second-quarter revenues is pegged at $1.47 billion, suggesting growth of 4.5% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 91 cents per share, indicating year-over-year growth of 5.8%.
Q2 Performance
Sealed Air’s second-quarter 2022 earnings and sales increased year over year. While earnings beat the Zacks Consensus Estimate, revenues missed the same. The company has a trailing four-quarter earnings surprise of around 7%, on average.
Our proven model doesn’t conclusively predict an earnings beat for Sealed Air this season. 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 -1.46%. 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.
Sealed Air’s third-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products as well as 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 had 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 now 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 related challenges. This is expected to have driven the operating margin performance in the September-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 in innovation and automation, which might have weighed on its margins.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s third-quarter net sales is pegged at $851 million, suggesting growth of 7% from the prior-year period. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $180 million, indicating an increase of 7% from the year-ago quarter. 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 third-quarter net sales is pegged at $636 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 10% 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 along with 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 declined 20.1% compared with the industry’s fall of 9.1%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Sonoco Products Company (SON - Free Report) currently has an Earnings ESP of +4.20% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings has remained unchanged at $1.43 over the past 60 days. The estimate suggests growth of 57% from the year-ago reported figure. SON has a trailing four-quarter earnings surprise of 4.1%, on average.
The Zacks Consensus Estimate for SON’s quarterly revenues is pegged at $1.92 billion. The estimate projects an increase of 57% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
AGCO Corporation (AGCO - Free Report) currently has an Earnings ESP of +1.96% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 0.3% in the past 60 days and is currently pegged at $3.12 per share. The projection indicates 29.5% growth from the year-ago reported figure.
The Zacks Consensus Estimate for AGCO’s quarterly revenues is pegged at $3.28 billion, which indicates an improvement of 20.4% from the year-ago reported figure. AGCO has a trailing four-quarter earnings surprise of 37.5%, on average.
Image: Bigstock
Sealed Air (SEE) to Report Q3 Earnings: What's in Store?
Sealed Air Corporation (SEE - Free Report) is scheduled to report third-quarter 2022 results on Nov 1, before the opening bell.
Q3 Estimates
The Zacks Consensus Estimate for the second-quarter revenues is pegged at $1.47 billion, suggesting growth of 4.5% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 91 cents per share, indicating year-over-year growth of 5.8%.
Q2 Performance
Sealed Air’s second-quarter 2022 earnings and sales increased year over year. While earnings beat the Zacks Consensus Estimate, revenues missed the same. The company has a trailing four-quarter earnings surprise of around 7%, 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 season. 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 -1.46%. 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 to Note
Sealed Air’s third-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products as well as 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 had 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 now 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 related challenges. This is expected to have driven the operating margin performance in the September-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 in innovation and automation, which might have weighed on its margins.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s third-quarter net sales is pegged at $851 million, suggesting growth of 7% from the prior-year period. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $180 million, indicating an increase of 7% from the year-ago quarter. 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 third-quarter net sales is pegged at $636 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 10% 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 along with 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 declined 20.1% compared with the industry’s fall of 9.1%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Sonoco Products Company (SON - Free Report) currently has an Earnings ESP of +4.20% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings has remained unchanged at $1.43 over the past 60 days. The estimate suggests growth of 57% from the year-ago reported figure. SON has a trailing four-quarter earnings surprise of 4.1%, on average.
The Zacks Consensus Estimate for SON’s quarterly revenues is pegged at $1.92 billion. The estimate projects an increase of 57% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
AGCO Corporation (AGCO - Free Report) currently has an Earnings ESP of +1.96% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 0.3% in the past 60 days and is currently pegged at $3.12 per share. The projection indicates 29.5% growth from the year-ago reported figure.
The Zacks Consensus Estimate for AGCO’s quarterly revenues is pegged at $3.28 billion, which indicates an improvement of 20.4% from the year-ago reported figure. AGCO has a trailing four-quarter earnings surprise of 37.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.