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The Zacks Consensus Estimate for SEE’s second-quarter revenues is pegged at $1.31 billion, indicating a 5.3% decline from the year-ago reported figure.
The consensus estimate for earnings is pegged at 64 cents per share. The Zacks Consensus Estimate for SEE’s second-quarter earnings has been unchanged in the past 60 days. The estimate indicates a year-over-year decline of 20%.
Image Source: Zacks Investment Research
Solid Earnings Surprise History
Sealed Air’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 32.3%.
Image Source: Zacks Investment Research
What the Zacks Model Indicates
Our 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. That is not the case here.
Earnings ESP: Sealed Air has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Factors Likely to Have Shaped Q2 Performance
Sealed Air experienced lower volumes for eight consecutive quarters due to weakness in the food retail market affecting its Food segment and recessionary pressures impacting the Protective segment. However, in the first quarter of 2024, the Food segment’s volumes returned to growth, driven by solid demand for bags, case-ready and automated solutions.
Volumes for both segments are likely to have benefited from the demand for automated equipment and sustainable packaging solutions. Nonetheless, this is likely to have been offset by continued weakness in the Protective segment this year.
Our model projects the Food segment volumes to be flat year over year in the second quarter. For the Protective segment, our model indicates a volume decline of 3.8% for the second quarter.
Our model estimate for the Food segment’s second-quarter net sales is pegged at $847 million, suggesting a fall of 3.8% from the prior-year period’s reported figure. The impacts of pricing (negative 3.8%) are likely to have dented the segment’s top line. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $182 million, indicating a year-over-year fall of 4.9%.
Our estimate for the Protective segment’s second-quarter net sales is $459 million, implying a year-over-year dip of 8.3%. This is mainly due to the volume decline and pricing impacts of 4.5%. Our estimate for the segment’s adjusted EBITDA is pegged at $86 million, suggesting a year-over-year decrease of 10%.
Sealed Air’s overall volumes are expected to decline 1.4%, per our model. We expect pricing impacts of 4.1% for the quarter. However, the company’s second-quarter performance is likely to have been supported by the sustained demand for packaging of food, beverage and healthcare products, and e-commerce activities.
Savings from the company’s Reinvent SEE Strategy initiatives have been driving productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the June-ended quarter.
Price Performance
In the past year, shares of Sealed Air have lost 19.2% against the industry’s 13% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for EMR’s earnings is pegged at $1.42 per share, indicating year-over-year growth of 10.1%. It has a trailing four-quarter average earnings surprise of 10.7%.
LegalZoom.com, Inc. (LZ - Free Report) is scheduled to release its second-quarter of 2024 results on Aug 7. It has an Earnings ESP of +17.02% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for LZ’s earnings is pegged at 9 cents per share, indicating a year-over-year fall of 10%. It has a trailing four-quarter average earnings surprise of 13.3%.
Plug Power (PLUG - Free Report) , scheduled to release its second-quarter of 2024 results on Aug 8, has an Earnings ESP of +1.67% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Plug Power’s earnings is pegged at a loss of 30 cents per share, indicating an improvement from the loss of 35 cents per share reported in the year-ago quarter.
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Will Lower Volumes Impact Sealed Air's (SEE) Q2 Earnings?
Sealed Air Corporation (SEE - Free Report) is scheduled to report second-quarter 2024 results on Aug 8, before the opening bell.
The Zacks Consensus Estimate for SEE’s second-quarter revenues is pegged at $1.31 billion, indicating a 5.3% decline from the year-ago reported figure.
The consensus estimate for earnings is pegged at 64 cents per share. The Zacks Consensus Estimate for SEE’s second-quarter earnings has been unchanged in the past 60 days. The estimate indicates a year-over-year decline of 20%.
Image Source: Zacks Investment Research
Solid Earnings Surprise History
Sealed Air’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 32.3%.
Image Source: Zacks Investment Research
What the Zacks Model Indicates
Our 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. That is not the case here.
Earnings ESP: Sealed Air has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Factors Likely to Have Shaped Q2 Performance
Sealed Air experienced lower volumes for eight consecutive quarters due to weakness in the food retail market affecting its Food segment and recessionary pressures impacting the Protective segment. However, in the first quarter of 2024, the Food segment’s volumes returned to growth, driven by solid demand for bags, case-ready and automated solutions.
Volumes for both segments are likely to have benefited from the demand for automated equipment and sustainable packaging solutions. Nonetheless, this is likely to have been offset by continued weakness in the Protective segment this year.
Our model projects the Food segment volumes to be flat year over year in the second quarter. For the Protective segment, our model indicates a volume decline of 3.8% for the second quarter.
Our model estimate for the Food segment’s second-quarter net sales is pegged at $847 million, suggesting a fall of 3.8% from the prior-year period’s reported figure. The impacts of pricing (negative 3.8%) are likely to have dented the segment’s top line. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $182 million, indicating a year-over-year fall of 4.9%.
Our estimate for the Protective segment’s second-quarter net sales is $459 million, implying a year-over-year dip of 8.3%. This is mainly due to the volume decline and pricing impacts of 4.5%. Our estimate for the segment’s adjusted EBITDA is pegged at $86 million, suggesting a year-over-year decrease of 10%.
Sealed Air’s overall volumes are expected to decline 1.4%, per our model. We expect pricing impacts of 4.1% for the quarter. However, the company’s second-quarter performance is likely to have been supported by the sustained demand for packaging of food, beverage and healthcare products, and e-commerce activities.
Savings from the company’s Reinvent SEE Strategy initiatives have been driving productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the June-ended quarter.
Price Performance
In the past year, shares of Sealed Air have lost 19.2% against the industry’s 13% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Emerson Electric Co. (EMR - Free Report) is scheduled to release its fiscal third-quarter of 2024 results on Aug 7. It has an Earnings ESP of +0.14% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EMR’s earnings is pegged at $1.42 per share, indicating year-over-year growth of 10.1%. It has a trailing four-quarter average earnings surprise of 10.7%.
LegalZoom.com, Inc. (LZ - Free Report) is scheduled to release its second-quarter of 2024 results on Aug 7. It has an Earnings ESP of +17.02% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for LZ’s earnings is pegged at 9 cents per share, indicating a year-over-year fall of 10%. It has a trailing four-quarter average earnings surprise of 13.3%.
Plug Power (PLUG - Free Report) , scheduled to release its second-quarter of 2024 results on Aug 8, has an Earnings ESP of +1.67% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Plug Power’s earnings is pegged at a loss of 30 cents per share, indicating an improvement from the loss of 35 cents per share reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.