Sealed Air (SEE) To Report Q2 Earnings: What's In The Cards?
Zacks Investment Research | Jul 29, 2019 10:43PM ET
Sealed Air Corporation (NYSE:SEE) is scheduled to report second-quarter 2019 results on Aug 2, before the opening bell. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 6.49%.
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.17 billion, indicating an improvement of 0.99% from the year-ago quarter. The same for earnings stands at 64 cents, suggesting in-line results with the prior-year quarter. Notably, the Zacks Consensus Estimate has remained stable over the past 30 days.
Over the past year, shares of Sealed Air have fallen 0.1% compared with the industry ’s decline of 29.3%. Will the upcoming earnings release provide a boost to Sealed Air’s stock? Let’s take a look.
Key Factors to Consider
Higher demand for its core product portfolio, recently-introduced innovation and solid fresh food market, and the e-commerce sector will drive the company’s second-quarter revenues.
In December 2018, Sealed Air announced a reformation plan — Reinvent SEE Strategy — along with a fresh restructuring program, in a move to drive growth and earnings. The new strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. Total annualized savings from both programs are expected to be approximately $70 million in 2019. Consequently, the second quarter’s earnings will reflect the savings from the restructuring actions. Further, results will be aided by benefits from acquisitions and favorable global business trends.
However, currency headwinds, input cost inflation and increased investment in R&D are likely to affect margins in the June-end quarter.
Sealed Air Corporation Price and EPS Surprise
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