Sealed Air Corporation (NYSE:SEE) shares traded higher in the premarket session on Tuesday.
The company reported fourth-quarter adjusted earnings per share of 75 cents, beating the street view of 67 cents. Quarterly sales of $1.37 billion outpaced the analyst consensus estimate of $1.36 billion.
Net sales were flat as reported year over year, increasing by 1%, on a constant dollar basis.
Adjusted EBITDA margin contracted to 19.7% from 19.9% a year ago.
“During the fourth quarter, we completed the reorganization into two market-focused businesses, Food and Protective, and had a strong finish to the year,” said Dustin Semach, Sealed Air’s president and CEO.
Also Read: Trump Reportedly Targets China’s Tech Sector With Stricter Biden-Era Chip Curbs. It Will Backfire, Says Beijing
The food segment increased 3% and the protective segment decreased 7%.
Volumes increased by $17 million, or 1%. Price had an unfavorable impact of $4 million.
Food volume growth was driven by competitive share gains and sustained end-market demand, while the company continued to rebalance its protective portfolio and enhance customer focus.
“We are continuing to streamline our operations and drive further productivity across the company. As a result, we are targeting growth and margin expansion in 2025,” the CEO added.
Outlook: Sealed Air expects FY25 revenue to range from $5.100 billion to $5.500 billion, compared to the $5.4 billion estimate. Adjusted EPS to be between $2.90 and $3.30 versus the $3.12 estimate.
Price Action: SEE shares are trading higher by 7.38% to $34.50 premarket at last check Tuesday.
Read Next:
Photo: Shutterstock
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.