Sealed Air Corp Earnings: Swinging to a Loss and Missing Estimates

S&P 500 (NYSE:SPY) component Sealed Air Corporation (NYSE:SEE) reported a drop to a loss in the first quarter driven by higher costs. Sealed Air, through its subsidiaries, is a global manufacturer of a variety of packaging materials and equipment systems. Its product brands include Bubble Wrap and Instapak. These offerings are used in a range of food, industrial, medical and consumer applications.

Investing Insights: What’s the Future of Microsoft’s Stock?

Sealed Air Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $6 million (3 cents per diluted share) in the quarter. Sealed Air Corporation had a net income of $59.7 million or 34 cents per share in the year-earlier quarter.

Revenue: Rose 69.9% to $1.92 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sealed Air Corporation reported adjusted net income of 18 cents per share. By that measure, the company fell short of mean estimate of 22 cents per share. Analysts were expecting revenue of $1.92 billion.

Quoting Management: Commenting on our operating performance, William V. Hickey, President and Chief Executive Officer, stated: “We remain on track toward achieving our 2012 adjusted EBITDA and year-end net debt targets despite the uncertainty of the European economy and the uneven recovery in the U.S. We are confident in the cost synergies with Diversey with increased cost synergy estimates in 2012 and future years, and we believe our vision is beginning to resonate with our customer base.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 69.8% to $2.05 billion in the fourth quarter of the last fiscal year. The figure rose 10.4% in the third quarter of the last fiscal year from the year earlier and climbed 11.3% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 9 cents in the fourth quarter of the last fiscal year and by one cent in the third quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 39 cents per share, down from 44 cents ninety days ago. At $1.50 per share, the average estimate for the fiscal year has fallen from $1.67 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Why Are These Health Stocks Feeling Under the Weather?

What Do Americans Think About Gold?>>

Here’s How to Bet on a Baby Boom>>