CHARLOTTE, N.C. - Sealed Air Corporation (NYSE: NYSE:SEE) reported a stronger-than-expected performance for the fourth quarter, with earnings surpassing analyst estimates. The company posted adjusted EPS of $0.88, which was $0.24 higher than the consensus estimate of $0.64. Revenue also exceeded expectations, coming in at $1.38 billion against the predicted $1.36 billion.
The company's stock responded positively to the news, climbing 2.94% as investors reacted to the earnings and revenue beat. This uptick suggests a favorable market response to the company's quarterly financial results.
Sealed Air's fourth quarter saw a slight dip in net sales, down 2% as reported, but remained flat on a constant currency basis. Despite the decrease in reported net sales, the company's net earnings for the quarter rose by 32% to $125 million. For the full year 2023, however, net earnings fell by 31% to $339 million.
The company's leadership provided insights into the quarter's performance and future outlook. "Our fourth quarter results were in line with our expectations. We ramped our CTO2Grow initiatives to improve the competitiveness of our businesses and help offset continued weakness in our end-markets," said Emile Chammas, SEE's Interim Co-CEO and COO. Dustin Semach, SEE's Interim Co-CEO and CFO, added, "We delivered strong free cash flow in the fourth quarter and made significant progress in deleveraging our balance sheet."
Looking ahead to the full year 2024, Sealed Air anticipates adjusted EPS to range from $2.65 to $3.05, with the midpoint of this guidance range falling below the analyst consensus of $3.04. The company forecasts revenue to be between $5.2 billion and $5.6 billion, which at the midpoint, is slightly below the consensus estimate of $5.502 billion.
Sealed Air's performance in the fourth quarter and the cautious guidance for 2024 reflect the company's ongoing efforts to navigate a challenging market environment while continuing its business transformation and focusing on improving fundamentals.
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