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 26, 2011. 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 49 cents per share, a rise of 14% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 48 cents. Between one and three months ago, the average estimate moved up. It has dropped from 50 cents during the last month. For the year, analysts are projecting profit of $1.74 per share, a rise of 8.7% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported net income of 40 cents per share against a mean estimate of profit of 38 cents per share. In the first quarter, it missed forecasts by 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.23 billion in revenue this quarter, a rise of 8.8% from the year ago quarter. Analysts are forecasting total revenue of $4.99 billion for the year, a rise of 11.1% from last year’s revenue of $4.49 billion.

Analyst Ratings: Analysts are bullish on Sealed Air as three analysts rate it as a buy, one rates it as a sell and two rate it as a hold.

A Look Back: In the second quarter, profit fell 3% to $65 million (37 cents a share) from $67 million (38 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 11.3% to $1.21 billion from $1.09 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 6.3% in the first quarter from the year earlier, climbed 5.5% in the fourth quarter of the last fiscal year from the year-ago quarter and 4.6% in the third quarter of the last fiscal year.

The company has seen net income fall in each of the last three quarters. Net income fell 2.5% in the first quarter and 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), and Binh Duong PP Pack Making JSC (HBD).

Stock Price Performance: During July 27, 2011 to October 20, 2011, the stock price had fallen $4.62 (-21.3%) from $21.64 to $17.02. 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% (+$1.45) 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% (-$1.35) over that span. Shares are down $8 (-32%) year to date.

(Source: Xignite Financials)

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