Sealed Air Set to Report Q2 Earnings: What Lies Ahead for the Stock?

Sealed Air Corporation SEE is scheduled to report second-quarter 2025 results on August 5, before the opening bell.

The Zacks Consensus Estimate for SEE’s second-quarter net sales is pegged at $1.32 billion, indicating a 1.9% decline from the year-ago reported figure.

The consensus estimate for earnings is pinned at 72 cents per share. The Zacks Consensus Estimate for SEE’s second-quarter earnings  has moved down 1.4% in the past 60 days. The estimate indicates a year-over-year decline of 13.3%.

SEE’s Solid Earnings Surprise History

Sealed Air’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 20.6%.

What the Zacks Model Indicates for Sealed Air

Our model does not predict an earnings beat for SEE 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 -2.94%. 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 3.

Factors Likely to Have Shaped SEE’s Q2 Performance

Sealed Air’s Protective segment experienced lower volumes for 13 consecutive quarters. The weakness is expected to persist throughout the remainder of 2025. For the Protective segment, our model indicates a year-over-year volume decline of 4.8% for the second 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 second-quarter results. However, this is expected to have been partially offset by customers’ cautiousness.  Our model projects the Food segment’s volumes to fall 0.2% year over year in the second quarter.

Our model estimate for the Food segment’s second-quarter net sales is pegged at $891 million, suggesting a dip of 0.3% from the prior-year period’s reported figure. Pricing is expected to inch up 0.5%, per our model. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $206 million, indicating a year-over-year rise of 0.5%.

Our estimate for the Protective segment’s second-quarter net sales is $424 million, implying a year-over-year dip of 6% due to the volume decline and pricing impacts of a negative 0.6%. Our estimate for the segment’s adjusted EBITDA is pegged at $67 million, suggesting a year-over-year fall of 17.9%.

Sealed Air’s overall volumes are expected to dip 1.7%, per our model. We expect pricing growth of 0.1% for the quarter.

However, 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 June-ended quarter.

Sealed Air Stock’s Price Performance

In the past year, SEE shares have lost 20% compared with the industry’s 7.9% decline.

Stocks to Consider

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

Emerson Electric Co. EMR, expected to release results  on August 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.

Parker-Hannifin Corporation PH, slated to release second-quarter 2025 results on August 7, has an Earnings ESP of +0.23% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Parker-Hannifin’s second-quarter 2025 earnings is pegged at $7.28 per share, suggesting a year-over-year rise of 4.6%. PH has a trailing four-quarter average surprise of 4.5%.

Eaton Corporation plc ETN is scheduled to release second-quarter 2025 results on August 5. It has an Earnings ESP of +0.33% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Eaton’s second-quarter 2025 earnings is pegged at $2.92 per share, suggesting a year-over-year rise of 6.9%. Eaton has a trailing four-quarter average surprise of 1.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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