Sealed Air Corp. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sealed Air Corp. (NYSE:SEE) will unveil its latest earnings on Wednesday, July 27, 2011. Sealed Air Corporation, through its subsidiaries, is a global manufacturer of a variety of packaging materials and equipment systems. Its product brands include Bubble Wrap and Instapak, and these offerings are used in a range of food, industrial, medical and consumer applications.

Sealed Air Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 38 cents per share, a rise of 8.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 41 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 38 cents during the last month. For the year, analysts are projecting net income of $1.73 per share, a rise of 8.1% from last year.

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Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the first quarter, it reported profit of 34 cents per share versus a mean estimate of 38 cents. Two quarters ago, it reported net income of 46 cents per share.

Wall St. Revenue Expectations: On average, analysts predict $1.18 billion in revenue this quarter, a rise of 8.3% from the year ago quarter. Analysts are forecasting total revenue of $4.84 billion for the year, a rise of 7.8% from last year’s revenue of $4.49 billion.

Analyst Ratings: Analysts seem relatively indifferent about Sealed Air with five of nine analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 6.3% to $1.13 billion in first quarter. The figure rose 5.5% in the fourth quarter of the last fiscal year from the year earlier, climbed 4.6% in the third quarter of the last fiscal year from the year-ago quarter and 6% in the second quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 2.5% from the year earlier quarter, while the figure dropped 21.2% in the fourth quarter of the last fiscal year.

Competitors to Watch: Bemis Company, Inc. (NYSE:BMS), AptarGroup, Inc. (NYSE:ATR), Rock-Tenn Company (NYSE:RKT), AEP Industries (NASDAQ:AEPI), Sonoco Products Company (NYSE:SON), Graham Packaging Co. Inc (NYSE:GRM), UFP Technologies, Inc. (NASDAQ:UFPT), Constar Intl., Inc. (NASDAQ:CNST).

Stock Price Performance: During April 26, 2011 to July 21, 2011, the stock price had fallen $3.48 (-13.1%) from $26.49 to $23.01. The stock price saw one of its best stretches over the last year between December 8, 2010 and December 22, 2010 when shares rose for 11-straight days, rising 6.1% (+$1.46) over that span. It saw one of its worst periods between November 4, 2010 and November 16, 2010 when shares fell for nine-straight days, falling 5.8% (-$1.36) over that span. Shares are down $2.19 (-8.7%) year to date.

(Source: Xignite Financials)

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