Sealed Air Corporation SEE is scheduled to report fourth-quarter 2024 results on Feb. 25, before the opening bell.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for SEE’s fourth-quarter revenues is pegged at $1.37 billion, indicating a 0.9% decline from the year-ago reported figure.

The consensus estimate for earnings is pinned at 67 cents per share. The Zacks Consensus Estimate for SEE’s fourth-quarter earnings has moved down 1.5% in the past 60 days. The estimate indicates a year-over-year decline of 23.9%.

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SEE’s Solid Earnings Surprise History

Sealed Air’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 34.6%.

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What the Zacks Model Indicates for Sealed Air

Our model does not conclusively predict an earnings beat for Sealed Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Earnings ESP: Sealed Air has an Earnings ESP of -1.49%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 4 (Sell).

Factors Likely to Have Shaped SEE’s Q4 Performance

Sealed Air’s Protective segment experienced lower volumes for 11 consecutive quarters. The company expected the weakness to persist throughout 2024 and continue in 2025. For the Protective segment, our model indicates a year-over-year volume decline of 5% for the fourth quarter.

After witnessing lower volumes for seven quarters, the Food segment volume returned to growth in the first quarter of 2024, driven by solid demand for bags, case-ready and automated solutions. The impacts of the same are expected to get reflected in the fourth-quarter results. Volumes for the segments are also likely to have benefited from the demand for automated equipment and sustainable packaging solutions. Our model projects the Food segment’s volumes to rise 4.8% year over year in the fourth quarter.

Nonetheless, higher volumes in the segment are likely to have been offset by continued weakness in the Protective segment in 2024.

Our model estimate for the Food segment’s fourth-quarter net sales is pegged at $912 million, suggesting growth of 2.2% from the prior-year period’s reported figure. The impacts of pricing (negative 2.1%) are likely to have offset the gains from higher volumes. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $196 million, indicating a year-over-year rise of 0.4%.

Our estimate for the Protective segment’s fourth-quarter net sales is $445 million, implying a year-over-year dip of 8.2% due to the volume decline and pricing impacts of negative 3.2%. Our estimate for the segment’s adjusted EBITDA is pegged at $75 million, suggesting a year-over-year decrease of 17.1%.

Sealed Air’s overall volumes are expected to rise 1.4%, per our model. We expect pricing impacts of 2.5% for the quarter.

Savings from the company’s Reinvent SEE Strategy have been driving productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the December-ended quarter.

Sealed Air’s Price Performance

In the past year, SEE shares have lost 3.6% against the industry’s 15.5% growth.

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Stocks to Consider

Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.

Trimble Inc. TRMB, which presently has a Zacks Rank of 3 and an Earnings ESP of +1.81%, is expected to report fourth-quarter 2024 results on Feb. 19. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TRMB’s earnings for the quarter is pegged at 88 cents per share, indicating 39.7% year-over-year growth. It has a trailing four-quarter average earnings surprise of 9.7%.

Osisko Gold Royalties OR, which currently has a Zacks Rank of 3 and an Earnings ESP of +7.15%, is expected to report fourth-quarter 2024 results soon.

The Zacks Consensus Estimate for OR’s earnings for the quarter is pegged at 16 cents per share, indicating 33% year-over-year growth. It has a trailing four-quarter average earnings surprise of 6.6%.

Greif, Inc. GEF has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is slated to release first-quarter fiscal 2025 results on Feb. 26.

The Zacks Consensus Estimate for GEF’s earnings for the quarter is pegged at 72 cents per share, implying a 43.3% year-over-year dip. It has a trailing four-quarter average earnings surprise of 133.5%.

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Sealed Air Corporation (SEE) : Free Stock Analysis Report

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