Will Protective Segment's Low Demand Hurt Sealed Air's Q4 Earnings?

Core Viewpoint - Sealed Air Corporation (SEE) is expected to report a decline in both revenue and earnings for the fourth quarter of 2024, with challenges in its Protective segment impacting overall performance [2][6]. Financial Performance Estimates - The Zacks Consensus Estimate for SEE's fourth-quarter revenues is $1.37 billion, reflecting a 0.9% decrease from the previous year [2]. - The consensus estimate for earnings is 67 cents per share, indicating a year-over-year decline of 23.9% [2]. - The earnings estimate has decreased by 1.5% over the past 60 days [2]. Earnings Surprise History - Sealed Air has a history of beating Zacks Consensus Estimates, with an average surprise of 34.6% over the last four quarters [3]. Segment Performance - The Protective segment has faced lower volumes for 11 consecutive quarters, with a projected year-over-year volume decline of 5% for Q4 [6]. - The Food segment, after experiencing lower volumes for seven quarters, is expected to see a 4.8% year-over-year volume increase in Q4, driven by demand for bags and automated solutions [7]. - The estimated net sales for the Food segment in Q4 are$ 912 million, representing a 2.2% growth from the prior year, despite a negative pricing impact of 2.1% [9]. - The Protective segment's estimated net sales for Q4 are $445 million, indicating an 8.2% year-over-year decline due to volume and pricing impacts [10]. Operational Efficiency - Savings from the company's Reinvent SEE Strategy are expected to enhance productivity and mitigate supply-chain challenges, positively influencing operating margins in Q4 [11]. Stock Performance - Over the past year, SEE shares have decreased by 3.6%, contrasting with the industry's growth of 15.5% [12].