Sealed Air Earnings: Here’s Why the Stock is Up Now

Sealed Air Corporation (NYSE:SEE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.75%.

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Sealed Air Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 325% to $0.34 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Decreased 3.65% to $1.98 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sealed Air Corporation reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.29. It missed the average revenue estimate of $3.75 billion.

Quoting Management:Jerome A. Peribere, President and Chief Operating Officer, commented: “The headwinds in Europe, particularly Southern Europe, have been strong, and we saw some de-stocking in North America late in the fourth quarter. Protein supply factors also continue to challenge us from a top line perspective. However, we are pleased to report our focus on profitable growth continues with all divisions reflecting improved adjusted EBITDA on a year over year basis. Additionally, we are now reporting our results based on our new segment structure – an important step as we continue the integration of our Diversey acquisition.”

Key Stats (on next page)…

Revenue increased 4.08% from $1.9 billion in the previous quarter. EPS increased 21.43% from $0.28 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.24 and has not changed. For the current year, the average estimate has moved down from a profit of $0.95 to a profit of $0.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)