Sealed Air Earnings: Even These Non-GAAP Numbers Don’t Please Investors

S&P 500 (NYSE:SPY) component Sealed Air Corporation (NYSE:SEE) reported its results for the third quarter. 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.

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Sealed Air Corporation Earnings Cheat Sheet

Results: Reported income from continuing operations of 28 cents per diluted share in the quarter and a net loss of $1.17 billion. Sealed Air Corporation had a net income of $73.7 million or 41 cents per share in the year-earlier quarter.

Revenue: Rose 52.4% to $1.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sealed Air Corporation reported adjusted net income of 31 cents per share. By that measure, the company fell in line with the mean estimate of 31 cents per share. Analysts were expecting revenue of $1.92 billion.

Quoting Management: Commenting on our operating performance, William V. Hickey, Chairman and Chief Executive Officer, stated: “Strong operational execution from our supply chain organization, a favorable price/cost spread, seasonality, and ongoing realization of synergies helped drive solid progress sequentially and year over year on top line results and on profitability, excluding the unfavorable impact of foreign currency. All of which, gives us good momentum as we finish 2012. Our sales and marketing teams continued to grow our presence in our targeted growth areas, driving net gains from new and expanded account wins, and we achieved an additional $10 million in synergy sales.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 53.5%, with the biggest boost coming in the first quarter when revenue rose 69.9% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 32 cents a share to 30 cents over the last ninety days. At 99 cents per share, the average estimate for the fiscal year has fallen from $1.04 ninety days ago.

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

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