CHARLOTTE, N.C. - Sealed Air Corporation (NYSE:SEE) reported an impressive first quarter, surpassing analyst expectations with an adjusted EPS of $0.78, a significant $0.25 higher than the estimated $0.53.
The company also exceeded revenue forecasts, posting $1.33 billion against a consensus estimate of $1.28 billion. The stock responded positively to the news, climbing 7.4% as investors reacted to the earnings and revenue beat.
The company's strong performance was attributed to higher-than-expected demand within the Food segment and volume stabilization in the Protective segment, alongside savings from the CTO2Grow program.
SEE's interim Co-CEO and COO, Emile Chammas, highlighted the impact of the commercial reorganization, which has led to improved market execution. Dustin Semach, interim Co-CEO and CFO, emphasized the company's robust free cash flow generation, reflecting a solid operating model and ongoing working capital improvements.
In a YoY comparison, net sales were slightly down by 1%, with volumes remaining flat. However, net earnings saw a substantial increase of 33%, and adjusted EBITDA grew by 4%. The company's cash flow from operations year-to-date soared by 141%, with free cash flow reaching $78 million compared to a negative $13 million in the previous year.
Looking ahead, SEE provided guidance for the second quarter of 2024, expecting EPS to be between $0.60 and $0.70, which is below the consensus estimate of $0.70. Revenue is anticipated to be around $1.3 billion, falling short of the expected $1.33 billion. For the full year 2024, the company forecasts EPS in the range of $2.65 to $3.05, with the midpoint below the consensus of $2.84, and revenue projections of $5.2 to $5.6 billion, with the midpoint also below the expected $5.4 billion.
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