Company Performance - Sealed Air reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and showing an increase from $0.78 per share a year ago, representing an earnings surprise of 20.90% [1] - The company posted revenues of $1.27 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.26%, although this is a decrease from year-ago revenues of $1.33 billion [2] - Over the last four quarters, Sealed Air has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Sealed Air shares have declined approximately 18.6% since the beginning of the year, in contrast to the S&P 500's decline of 3.9% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $1.32 billion, and for the current fiscal year, it is $2.99 on revenues of $5.31 billion [7] - The estimate revisions trend for Sealed Air is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Containers - Paper and Packaging industry, to which Sealed Air belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Sealed Air's stock performance [5]

Financial Performance - Net sales for Q1 2025 were $1.27 billion, a decrease of 4.3% compared to Q1 2024, with the Food segment down 2% and the Protective segment down 9%[5] - Net earnings increased by 40.2% to $117 million, or $0.79 per diluted share, compared to $83 million, or $0.57 per diluted share in the prior year[7] - Adjusted EBITDA was $276 million, representing 21.7% of net sales, slightly down from $278 million, or 20.9% in the prior year[9] - Adjusted earnings per diluted share increased by 3.8% to $0.81, driven primarily by lower interest expense[8] - Net earnings for the three months ended March 31, 2025, increased to $113.5 million, up from $82.0 million in the same period of 2024, representing a growth of 38.5%[33] - GAAP net earnings for Q1 2025 were $116.9 million, a 40.1% increase from $83.4 million in Q1 2024[47] - Diluted EPS for Q1 2025 was $0.79, compared to $0.57 in Q1 2024, reflecting a 38.6% increase[47] - Non-GAAP adjusted net earnings for Q1 2025 were $119.5 million, up 5.9% from $112.8 million in Q1 2024[47] Cash Flow and Debt - Free cash flow was a use of $12 million in Q1 2025, compared to a source of $78 million in Q1 2024, reflecting higher incentive compensation and tax payments[13] - Cash flow from operations was $32 million in Q1 2025, down from $125 million in the same period last year[12] - Total debt remained stable at $4.4 billion as of March 31, 2025, with net debt increasing slightly to $4.1 billion[14] - The company reported a net leverage ratio of 3.7x as of March 31, 2025, compared to 3.6x at the end of 2024[15] - The company reported a net debt of $4,069.0 million as of March 31, 2025, compared to $4,032.1 million at the end of 2024[52] - The net leverage ratio increased slightly to 3.7x as of March 31, 2025, from 3.6x at the end of 2024[53] - The total debt as of March 31, 2025, was $4,404.2 million, compared to $4,403.9 million at the end of 2024[52] Guidance and Projections - The company maintained its full-year guidance for 2025, projecting net sales between $5.1 billion and $5.5 billion, with an adjusted EBITDA range of $1.075 billion to $1.175 billion[16] Tax and Liabilities - The effective tax rate for Q1 2025 was 8.0%, significantly lower than 30.0% in the prior year, benefiting from the resolution of previous international tax matters[6] - Total current liabilities decreased to $1,507.4 million from $1,635.5 million, reflecting a reduction of approximately 7.8%[30] - The effective income tax rate for the three months ended March 31, 2025, was 8.0%, significantly lower than 30.0% in the same period of 2024[41] Assets and Inventory - Total assets as of March 31, 2025, were $7,049.2 million, a slight increase from $7,022.1 million as of December 31, 2024[30] - The company reported a decrease in inventories, net, to $766.8 million as of March 31, 2025, from $722.2 million at the end of 2024, indicating a 6.2% increase[30] - Cash and cash equivalents at the end of the period were $335.2 million, down from $371.8 million at the beginning of the period, a decrease of 9.8%[33] Special Items and Charges - Special items for Q1 2025 had a net impact of $2.6 million, down from $29.4 million in Q1 2024[50] - The company incurred restructuring charges of $2.6 million in Q1 2025, significantly lower than $15.5 million in Q1 2024[50] - Liquibox intangible amortization for Q1 2025 was $7.6 million, slightly up from $7.5 million in Q1 2024[50] - The company experienced a foreign currency exchange loss of $1.7 million in Q1 2025, down from $4.9 million in Q1 2024[50]

Q1 2025 Financial Performance - Net sales decreased by 4% as reported to $1.3 billion[12], with a 2% decline on a constant currency basis[12] - Adjusted EBITDA was $276 million[12], a 1% decrease as reported but a 2% increase on a constant currency basis[12] - Adjusted EPS increased by 4% as reported to $0.81[12], and 9% on a constant currency basis[12] Segment Performance - Food Protective segment organic sales increased by 1%[17], while Protective segment organic sales decreased by 8%[17] - Food Protective segment reported adjusted EBITDA of $203 million, up 7% as reported and 10% on a constant currency basis[17], with an adjusted EBITDA margin of 23.8%[17] - Protective segment reported adjusted EBITDA of $74 million, down 18% as reported and 16% on a constant currency basis[17], with an adjusted EBITDA margin of 17.6%[17] Cash Flow and Capital Allocation - Free cash flow was negative $12 million, down year-over-year from $78 million in Q1 2024[22] - The company is targeting a net debt to adjusted EBITDA ratio of approximately 30x in 2026[21, 29] - In Q1 2025, the cash dividend was $29 million, or $0.20 per share, representing a dividend payout ratio of approximately 25%[29] 2025 Outlook - Net sales are projected to be in the range of $5.1 billion to $5.5 billion, representing a decline of 4% to an increase of 3% on a constant currency basis[23] - Adjusted EBITDA is expected to be in the range of $1.075 billion to $1.175 billion, representing a decline of 2% to an increase of 7% on a constant currency basis[23] - Adjusted EPS is projected to be in the range of $2.90 to $3.30, representing a decline of 6% to an increase of 7% on a constant currency basis[23] - Free cash flow is expected to be in the range of $350 million to $450 million[23]

Core Viewpoint - Sealed Air Corporation (SEE) is expected to report a decline in both net sales and earnings for the first quarter of 2025, with a consensus estimate of $1.27 billion in net sales, reflecting a 4.6% decrease year-over-year, and earnings estimated at 67 cents per share, indicating a 14.1% decline from the previous year [1]. Group 1: Earnings Performance - Sealed Air has a history of beating earnings estimates, with an average surprise of 27.1% over the last four quarters [2]. - The current Earnings ESP for Sealed Air is +0.12%, and the company holds a Zacks Rank of 3, suggesting a neutral outlook [4]. Group 2: Segment Performance - The Protective segment has faced lower volumes for 12 consecutive quarters, with a projected year-over-year volume decline of 4.2% for Q1 2025 [5]. - The Food segment, after experiencing lower volumes for seven quarters, is expected to show flat volumes year-over-year in Q1 2025, with net sales estimated at $841 million, a 3.1% decrease from the prior year [6][7]. - The Protective segment's net sales are estimated at $419 million, reflecting a 9.2% year-over-year decline, with adjusted EBITDA projected to decrease by 17.5% [8]. Group 3: Operational Factors - The company's Reinvent SEE Strategy is expected to drive productivity gains and mitigate supply-chain challenges, positively impacting operating margins in the March-ended quarter [9]. Group 4: Stock Performance - Over the past year, Sealed Air's stock has declined by 20.5%, compared to a 10.5% decline in the industry [10].

Company Overview - Sealed Air (SEE) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.67, reflecting a decrease of 14.1% compared to the previous year [3]. - Revenues are anticipated to be $1.27 billion, down 4.6% from the same quarter last year [3]. Earnings Expectations - The consensus EPS estimate has been revised 0.93% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Sealed Air is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.12%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - In the last reported quarter, Sealed Air exceeded the expected EPS of $0.67 by delivering $0.75, achieving a surprise of +11.94% [12]. - Over the last four quarters, the company has consistently beaten consensus EPS estimates [13]. Industry Context - Graphic Packaging (GPK), a peer in the Zacks Containers - Paper and Packaging industry, is expected to report an EPS of $0.56, down 15.2% year-over-year, with revenues projected at $2.13 billion, a decrease of 5.7% [17]. - The consensus EPS estimate for Graphic Packaging has been revised 1.7% higher, but a lower Most Accurate Estimate results in a negative Earnings ESP of -2.14%, complicating predictions for beating the consensus [18].

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Sealed Air (SEE) , which belongs to the Zacks Containers - Paper and Packaging industry, could be a great candidate to consider.This packaging company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 15.82%.For the most recent quarter, Sealed Ai ...

Sealed Air (SEE) shares rallied 12.8% in the last trading session to close at $26.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.9% loss over the past four weeks.Sealed Air’s shares got a boost yesterday after U.S President Trump announced a 90-day pause on certain tariffs for most countries (except China). SEE serves diverse industries with operations in 117 countries/territories.This packaging compa ...

CHARLOTTE, N.C., April 3, 2025 /PRNewswire/ -- Sealed Air (NYSE: SEE) announced today that it will release its first quarter 2025 results at approximately 7:00 a.m. EDT on Tuesday, May 6, 2025, and will host a conference call and webcast at 10:00 a.m. EDT.  The conference will be webcast live. Interested parties can view the events on Sealed Air's Investors homepage at ir.sealedair.com.  About Sealed Air Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate s ...

A month has gone by since the last earnings report for Sealed Air (SEE) . Shares have lost about 12% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Sealed Air due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, ...

Financial Performance - In 2024, the company experienced slightly higher net sales in the second half of the year compared to the first half, although consolidated results were slightly lower due to higher tax expenses and restructuring costs [51]. - The company has not identified any indication of goodwill impairment in its annual assessments for 2023 and 2022, indicating stable financial health [363]. - The company prepares financial projections annually, considering macroeconomic conditions and historical trends to develop medium-term growth assumptions [367]. Pension Obligations - The total projected benefit obligation for the U.S. pension plan was $127 million, with a total benefit cost of $1 million for the year ended December 31, 2024; for international pension plans, the obligation was $477 million with a cost of $4 million [367]. - The total projected benefit obligation for a defined benefit pension plan in the UK is $8 million, with a full buy-out expected to be completed by 2025 [369]. - The accumulated comprehensive losses for the UK pension plan amount to $6 million, which will be recognized in Other expense upon plan termination or full buy-out [369]. - A 25 basis point increase in the assumed discount rate would decrease the projected benefit obligation for the US by $2.5 million, while a 25 basis point decrease would increase it by $2.6 million [369]. - A 100 basis point increase in the expected long-term rate of return on plan assets would decrease the expected net periodic benefit cost for the US by $1.0 million for 2025, while a decrease would have the opposite effect [369]. Taxation - The company provides a valuation allowance on deferred tax assets when it is more likely than not that some portion will not be realized, impacting future financial results [370]. - Changes in tax laws and future taxable earnings can affect the valuation allowances related to deferred tax assets, potentially impacting the consolidated financial position [371]. - The company may establish a liability for additional taxes based on tax positions for years where statutes of limitations have not expired, which could materially affect financial results [372]. - Adjustments to tax liabilities based on audits and changing circumstances could lead to significant impacts on the company's consolidated financial position [373]. - Tax benefits from uncertain tax positions are recognized only if it is more likely than not that they will be sustained upon examination by tax authorities [374]. - The largest amount of tax benefit recognized is based on a greater than fifty percent likelihood of realization upon settlement with tax authorities [374]. Environmental Compliance and Sustainability - The company maintains compliance with various environmental regulations, which has not materially affected its capital expenditures or consolidated financial condition [52]. - The company has registered manufacturing plants in the EU to comply with regulations for products incorporating recycled content, reflecting its commitment to sustainability [53]. - The company is actively monitoring regulatory developments related to Extended Producer Responsibility (EPR) laws in various jurisdictions, including the UK, EU, and Canada [56]. - The company has reformulated certain U.S. food packaging products to comply with anticipated regulations regarding per- and polyfluoroalkyl substances (PFAS) [57]. - The company has policies in place to guide environmental, health, and safety matters, ensuring compliance with relevant laws and regulations [55]. - The company has incurred costs related to compliance with product registration and FDA requirements, but these have not had a material adverse effect on its business [53].