Sealed Air Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sealed Air Corp (NYSE:SEE) will unveil its latest earnings on Wednesday, October 31, 2012. 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.

Sealed Air Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 31 cents per share, a decline of 35.4% 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 43 cents. Between one and three months ago, the average estimate moved down. It has risen from 30 cents during the last month. Analysts are projecting profit to rise by 39.6% versus last year to 99 cents.

Past Earnings Performance: Last quarter, the company fell short of estimates by 15 cents, coming in at profit of 20 cents a share versus the estimate of net income of 35 cents a share. It was the fourth straight quarter of missing estimates.

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A Look Back: In the second quarter, the company swung to a loss of $13.7 million (7 cents a share) from a profit of $65 million (37 cents) a year earlier, missing analyst expectations. Revenue rose 65.3% to $2 billion from $1.21 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.98 billion in revenue this quarter, a rise of 58.4% from the year-ago quarter. Analysts are forecasting total revenue of $7.9 billion for the year, a rise of 40.1% from last year’s revenue of $5.64 billion.

Stock Price Performance: Between August 29, 2012 and October 25, 2012, the stock price had risen $1.34 (9.2%), from $14.58 to $15.92. The stock price saw one of its best stretches over the last year between November 29, 2011 and December 7, 2011, when shares rose for seven straight days, increasing 12% (+$2) over that span. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 11.7% (-$2.12) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 53.8% over the last four quarters.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.31 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.35 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4% to $2.32 billion while assets rose 0.9% to $3.04 billion.

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

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