Sealed Air Corporation (SEE Quick QuoteSEE - Free Report) is set to invest $8 million in Highcon to accelerate new product offerings and use Highcon technology to enable manufacturing efficiencies. As part of this strategic collaboration, SEE will buy the Highcon Beam 2C system that will be delivered and installed in the first quarter of 2023.

 

Sealed Air will invest $8 million in the form of convertible debt and 15% warrants that must be converted at 3.1 NIS per share before five years from the date of the deal. Additionally, Sealed Air will be granted warrants of up to $20 million against possible future purchases of Highcon's products and services over a period of three years. 

 

Sealed Air and Highcon teams have been working together for the past few months to investigate how the latter’s products and technology might be applied to SEE and its activities. Highcon’s talent, technologies and culture left a mark on SEE.

 

Sealed Air will largely benefit from Highcon’s digital paperboard converting and laser cutting capabilities. Highcon's sustainable value proposition will aid SEE’s vision and strategies for the future. Highcon, on the other hand, will gain from Sealed Air’s global reach. With the help of this alliance, Highcon will be able to enter new application spaces. 

 

In the last reported quarter, SEE’s results were positively impacted by pricing actions and productivity improvements. However, foreign currency headwinds, continued cost inflation, and slowing demand proved to be a challenge. 

 

The company reported third-quarter 2022 adjusted earnings per share of 98 cents, beating the Zacks Consensus Estimate of 91 cents. This compares favorably with the prior’s year’s reported earnings of 86 cents. Revenues for the quarter totaled $1,400 million, flat with the year-ago quarter. The top line missed the Zacks Consensus Estimate of $1,470 million.

 

To reflect the third-quarter results, Sealed Air lowered its net sales guidance to the range of $5.65 billion to $5.75 billion, down from its earlier provided range of $5.85 to $6.05 billion. Currently, the company expects its adjusted earnings to range from $4.05 to $4.15 per share. This has been narrowed from the previously stated earnings per share range of $4.05 to $4.20. 

 

On average, the company has a trailing four-quarter earnings surprise of 7.7%.

Sealed Air’s shares have lost 18.1% in a year's time compared with the industry’s decline of 0.8%.

Sealed Air currently carries a Zacks Rank #3 (Hold). 

 

Some better-ranked stocks from the Industrial Products sector are Hubbell (HUBB Quick QuoteHUBB - Free Report) , Tenaris (TS Quick QuoteTS - Free Report) and W.W. Grainger (GWW Quick QuoteGWW - Free Report) . HUBB flaunts a Zacks Rank #1 (Strong Buy), while TS and GWW hold a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

 

Hubbell’s earnings surprise in the last four quarters was 10.6%, on average. In the past 60 days, its earnings estimates have increased 6.1% for 2022. For the ongoing year, the bottom line is estimated to be $10.40, suggesting growth of 29.3% from the previous-year’s level. The HUBB stock has gained 17.4% in the past year.

 

Tenaris has an estimated year-over-year earnings growth rate of 131.5% for the current fiscal year. The earnings per share estimate is currently pegged at $4.33. The estimates have been revised by 5.1% north in the past 60 days. TS has an average trailing four-quarter earnings surprise of 20.9%. Its shares have gained 56.6% over the past year.

 

Grainger delivered a trailing four-quarter earnings surprise of 10.1%, on average. Current-year earnings for GWW are estimated to be $29.31 per share at present, suggesting an estimated growth of 161.1% from the year-ago reported figure. The estimates have moved up by 4.4% in the last 60 days. GWW’s shares have risen 14.3% in the past year.