Sealed Air Gears Up to Report Q1 Earnings: Here's What to Expect

Core Viewpoint - Sealed Air Corporation (SEE) is expected to report a decline in both net sales and earnings for the first quarter of 2025, with a consensus estimate of $1.27 billion in net sales, reflecting a 4.6% decrease year-over-year, and earnings estimated at 67 cents per share, indicating a 14.1% decline from the previous year [1]. Group 1: Earnings Performance - Sealed Air has a history of beating earnings estimates, with an average surprise of 27.1% over the last four quarters [2]. - The current Earnings ESP for Sealed Air is +0.12%, and the company holds a Zacks Rank of 3, suggesting a neutral outlook [4]. Group 2: Segment Performance - The Protective segment has faced lower volumes for 12 consecutive quarters, with a projected year-over-year volume decline of 4.2% for Q1 2025 [5]. - The Food segment, after experiencing lower volumes for seven quarters, is expected to show flat volumes year-over-year in Q1 2025, with net sales estimated at$ 841 million, a 3.1% decrease from the prior year [6][7]. - The Protective segment's net sales are estimated at $419 million, reflecting a 9.2% year-over-year decline, with adjusted EBITDA projected to decrease by 17.5% [8]. Group 3: Operational Factors - The company's Reinvent SEE Strategy is expected to drive productivity gains and mitigate supply-chain challenges, positively impacting operating margins in the March-ended quarter [9]. Group 4: Stock Performance - Over the past year, Sealed Air's stock has declined by 20.5%, compared to a 10.5% decline in the industry [10].