Sealed Air(SEE) ZACKS·2025-02-25 19:27Core Insights - Sealed Air Corporation (SEE) reported fourth-quarter 2024 adjusted earnings per share of 75 cents, exceeding the Zacks Consensus Estimate of 67 cents, although it represented a 14.8% decline year over year due to increased adjusted tax expenses [1] - Total sales for the quarter were $1.37 billion, slightly above the Zacks Consensus Estimate of $1.36 billion, but down 0.3% from $1.38 billion in Q4 2023 [2] - The company expects net sales for 2025 to be between $5.1 billion and $5.5 billion, with adjusted EBITDA projected at $1.075 billion to $1.175 billion [12] Financial Performance - Gross profit for Q4 was $407 million, a 0.5% increase from $405 million in the same quarter last year, with a gross margin improvement to 29.6% from 29.4% [4] - Adjusted EBITDA for the quarter was approximately $271 million, down 1.3% year over year, with an adjusted EBITDA margin of 19.7% compared to 19.9% in the previous year [5] - Cash flow from operating activities was around $728 million in 2024, an increase from $516 million in the prior year, with total debt reduced to $4.40 billion from $4.69 billion [10] Segment Performance - In the Food segment, net sales increased 3.3% year over year to $922.5 million, driven by a 4.9% volume growth, despite a 1.8% unfavorable impact from foreign currency [6] - The Protective segment saw net sales decline by 7.1% year over year to $450 million, with volumes falling 5.4% due to market pressures [7] - Adjusted EBITDA for the Protective segment decreased 26% year over year to $67 million, impacted by lower volumes and unfavorable net price realization [8] Market Context - Sealed Air's shares have decreased by 8.9% over the past year, contrasting with the industry's growth of 12.3% [13] - The company’s adjusted earnings per share for 2023 was $3.14, down 1.3% year over year, while total sales for 2024 edged down 1.8% to $5.39 billion [11]