Sealed Air Goes Negative

Seth Jayson, The Motley Fool
Updated

Sealed Air (NYS: SEE) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sealed Air crushed expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped to a loss.

Gross margins improved, operating margins dropped, net margins contracted.

Revenue details
Sealed Air reported revenue of $2.05 billion. The three analysts polled by S&P Capital IQ anticipated revenue of $1.31 billion on the same basis. GAAP reported sales were 70% higher than the prior-year quarter's $1.21 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.08. The nine earnings estimates compiled by S&P Capital IQ predicted $0.47 per share on the same basis. GAAP EPS were -$0.23 for Q4 compared to $0.29 per share for the prior-year quarter.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.5%, 600 basis points better than the prior-year quarter. Operating margin was 8.1%, 370 basis points worse than the prior-year quarter. Net margin was -2.4%, 660 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.91 billion. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $8.23 billion. The average EPS estimate is $1.51.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sealed Air is outperform, with an average price target of $20.75.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Sealed Air. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement