Sealed Air Set to Report Q3 Earnings: What's in Store for the Stock?

Sealed Air Corporation (SEE) is scheduled to report third-quarter 2025 results on Nov. 4, before the opening bell.

The Zacks Consensus Estimate for SEE’s third-quarter net sales is pegged at $1.31 billion, indicating a 2.4% decline from the year-ago reported figure.

The consensus estimate for earnings is pinned at 68 cents per share. The Zacks Consensus Estimate for SEE’s third-quarter earnings has been unchanged in the past 60 days. The estimate indicates a year-over-year decline of 13.9%.

SEE’s Solid Earnings Surprise History

Sealed Air’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 19%.

What the Zacks Model Indicates for Sealed Air

Our model predicts 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 precisely the case here.

Earnings ESP: Sealed Air has an Earnings ESP of +1.28%. 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 Q3 Performance

Sealed Air’s Protective segment experienced lower volumes for 14 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 2.8% for the third quarter.

The Food segment volumes are being driven by solid demand for bags, case-ready and automated solutions. The impacts of the same are expected to get reflected in the third-quarter results. However, this is expected to have been partially offset by customers’ cautiousness. Our model projects the Food segment’s volumes to fall 3% year over year in the third quarter.

Our model estimate for the Food segment’s third-quarter net sales is pegged at $879 million, suggesting a dip of 2.1% from the prior-year period’s reported figure. Pricing is expected to inch up 0.3%, per our model. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $207 million, indicating a year-over-year rise of 0.4%.

Our estimate for the Protective segment’s third-quarter net sales is $433 million, implying a year-over-year dip of 3.3% due to the volume decline and pricing impacts of a negative 1.8%. Our estimate for the segment’s adjusted EBITDA is pegged at $70 million, suggesting a year-over-year fall of 7.6%.

Sealed Air’s overall volumes are expected to dip 2.9%, per our model. We expect a pricing decrease of 0.4% 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 September-ended quarter.

Sealed Air Stock’s Price Performance

In the past year, SEE shares have lost 4.9% compared with the industry’s 34.5% decline.

Recent Earnings Performances of SEE’s Peers

Avery Dennison Corporation (AVY) reported third-quarter 2025 adjusted earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.32. The bottom line increased 1.7% year over year, driven by productivity gains.

Avery Dennison’s total revenues grew 1.5% year over year to $2.22 billion and beat the consensus estimate of $2.21 billion. Avery Dennison expects adjusted EPS between $2.35 and $2.45 for fourth-quarter 2025.

Packaging Corporation of America (PKG) posted adjusted earnings per share of $2.73 in the third quarter of 2025, missing the Zacks Consensus Estimate of $2.83 by 4%.

The bottom line, however, increased 3% year over year, supported by higher prices and mix in both the segments, along with lower fiber costs and maintenance outage expenses. Packaging Corp’s revenues in the third quarter grew 6% year over year to $2.3 billion. The top line beat the Zacks Consensus Estimate of $2.26 billion.

Packaging Stock Awaiting Results

Karat Packaging Inc. (KRT) is set to release third-quarter 2025 results on Nov. 6.

The Zacks Consensus Estimate for Karat Packaging’s third-quarter 2025 earnings is pegged at 39 cents per share, suggesting a year-over-year decline of 17%. The Zacks Consensus Estimate for Karat Packaging’s revenues is pegged at $124 million, indicating an increase from $113 million reported in the prior year quarter.

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

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