Integrated packaging solutions provider Sealed Air Corporation (NYSE:SEE) will be announcing earnings results tomorrow before market hours. Here's what to look for.
Sealed Air beat analysts' revenue expectations by 3.8% last quarter, reporting revenues of $1.33 billion, down 1.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' volume and earnings estimates.
Is Sealed Air a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Sealed Air's revenue to decline 5.3% year on year to $1.31 billion, a further deceleration from the 2.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.64 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sealed Air has missed Wall Street's revenue estimates five times over the last two years.
Looking at Sealed Air's peers in the industrial packaging segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Packaging Corporation of America delivered year-on-year revenue growth of 6.3%, beating analysts' expectations by 2.5%, and Avery Dennison reported revenues up 6.9%, topping estimates by 1.9%. Packaging Corporation of America's stock price was unchanged after the results, while Avery Dennison was down 4.3%.
Read our full analysis of Packaging Corporation of America's results here and Avery Dennison's results here.
Investors in the industrial packaging segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Sealed Air is up 2.4% during the same time and is heading into earnings with an average analyst price target of $43.4 (compared to the current share price of $34.84).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.