What To Expect From Sealed Air's (SEE) Q3 Earnings

Integrated packaging solutions provider Sealed Air Corporation (NYSE:SEE) will be reporting results this Tuesday before market open. Here’s what to look for.

Sealed Air beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $1.34 billion, flat year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ EBITDA estimates.

Is Sealed Air a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Sealed Air’s revenue to decline 2.2% year on year to $1.32 billion, in line with the 2.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sealed Air has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.5% on average.

Looking at Sealed Air’s peers in the industrial packaging segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 1.5%, and Silgan Holdings reported revenues up 15.1%, topping estimates by 3.8%. Crown Holdings traded up 5.4% following the results while Silgan Holdings was down 14.5%.

Read our full analysis of Crown Holdings’s results here and Silgan Holdings’s results here.

Investors in the industrial packaging segment have had steady hands going into earnings, with share prices flat over the last month. Sealed Air is down 7.5% during the same time and is heading into earnings with an average analyst price target of $41.31 (compared to the current share price of $33.51).

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