Sealed Air (SEE) Q1 Earnings: Is A Disappointment In Store?

Sealed Air Corporation (NYSE:SEE) will release first-quarter 2017 results on May 9, before the market opens.

Last quarter, Sealed Air beat estimates by 1.33%. The company managed to beat on earnings in each of the trailing four quarters, delivering an average positive surprise of 2.12%.

Let’s see how things are shaping up for this announcement.

Sealed Air Corporation Price and EPS Surprise

Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote

Factors to Consider

Sealed Air’s performance will be affected by unfavorable foreign currency translation and weakness in industrial-based businesses. Further, weaker-than-anticipated growth in the Diversey Care segment due to the brand licensing expiration with SC Johnson is likely to hurt the company’s results in the quarter to be reported. Despite enhanced demand for its core product portfolio and the recently introduced innovations, declines in the beef market, and uncertain political conditions in Europe and the Middle East remain headwinds.

Earnings Whispers

Our proven model does not conclusively show that Sealed Air will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Sealed Air is -2.17%. This is because the Most Accurate estimate is 45 cents, while the Zacks Consensus Estimate is pegged at 46 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sealed Air currently carries a Zacks Rank #4 (Sell). It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Share Price Performance

Sealed Air underperformed the Zacks categorized Containers-Paper/Plastic industry over the past one year. While the stock dipped 4.4%, the industry recorded growth of 14.9% in the same time frame.

Stocks that Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Louisiana-Pacific Corporation (NYSE:LPX) has an Earnings ESP of +27.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

DXC Technology Company (NYSE:DXC) has an Earnings ESP of +7.06% and a Zacks Rank #1.

AptarGroup, Inc. (NYSE:ATR) has an Earnings ESP of +1.05% and a Zacks Rank #2.

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