NYSE$SEE

Sealed Air Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

SEE's Q1 2022 performance was driven by the SEE Operating Engine, with a focus on automation, digital solutions, and sustainability.

SEE reported strong Q1 2022 results, with net sales of $1.4 billion, up 12% as reported and 15% on a constant currency basis. Net earnings increased by 41% to $150 million, with EPS up 47% to $1.00. Adjusted EBITDA rose by 22% to $327 million, and Adjusted EPS increased by 43% to $1.12.

  • Net sales reached $1.4 billion, reflecting a 12% increase as reported and a 15% increase on a constant currency basis.
  • Net earnings grew by 41% to $150 million, with earnings per share (EPS) increasing by 47% to $1.00.
  • Adjusted EBITDA increased by 22% to $327 million, while Adjusted EPS rose by 43% to $1.12.
  • Cash flow from operations was $48 million, a 39% decrease compared to the previous year, with increased investments in growth, including a 53% rise in CapEx to $67 million.

Headline financials

Total Revenue

$1.42B

Previous: $1.27B+11.9%
EPS (adj)

$1.12

Previous: $0.78+43.6%
Adjusted EBITDA

$327M

Previous: $268M+22.0%
Capital Expenditures

-$67M

Previous: -$43.9M-52.6%
Free Cash Flow

-$18.6M

Previous: $36M-151.7%
Net Income

$149M

Previous: $110M+35.5%
Operating Income

$262M

Previous: $203M+29.4%
Gross Profit

$477M

Previous: $401M+18.9%
Cash & Equivalents

$278M

Previous: $370M-24.8%
Total Assets

$6.12B

Previous: $5.92B+3.4%
Stock-Based Comp

$17.3M

Previous: $11.1M+55.9%

Revenue & EPS history

Sealed Air · Revenue · Quarterly

$1.42B

Q1 2022+11.9%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Sealed Air · $1.42B total across 2 segments · Q1 2022

  • Food
    $808M+15.0%
  • Protective
    $610M+8.0%

Forward guidance

For the full year 2022, SEE now expects net sales in the range of $5.85 billion to $6.05 billion. Full year Adjusted EBITDA is now expected to be in the range of $1.22 billion to $1.25 billion. The Company forecasts full year Adjusted EPS to now be in the range of $4.05 to $4.20. The company continues to expect full year Free Cash Flow in 2022 to be in the range of $510 million to $550 million.

Tailwinds

  • Net sales are expected to be in the range of $5.85 billion to $6.05 billion.
  • Adjusted EBITDA is projected to be between $1.22 billion and $1.25 billion.
  • Adjusted EPS is forecasted to be in the range of $4.05 to $4.20.
  • The Adjusted Tax Rate is anticipated to be approximately 26%.
  • Free Cash Flow is expected to be in the range of $510 million to $550 million.

Headwinds

  • Net sales include an unfavorable currency impact of approximately 2%.
  • Net sales include an unfavorable divestiture impact of approximately 1%.
  • Currency fluctuations are expected to have an unfavorable impact of approximately 2% on Adjusted EBITDA.
  • Higher working capital requirements largely due to planned inventory prebuild
  • Extreme inflationary pressures and widespread supply challenges

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.4%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+13.7%

Q3 2023

Best reaction

-12.5%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.1%+0.3%+0.5%
Q3 2025+5.2%+7.9%+24.2%
Q2 2025+3.4%+1.2%+11.5%
Q1 2025+5.7%+11.0%+15.5%
Q4 2024+5.8%+6.4%-8.0%
Q3 2024-4.6%-4.1%-1.7%
Q2 2024-3.7%-4.9%-1.7%
Q1 2024+9.6%+13.2%+21.1%
Q4 2023-5.5%-3.7%+3.1%
Q3 2023+13.7%+9.3%+11.9%
Q2 2023-10.3%-13.4%-23.8%
Q1 2023-12.1%-11.1%-20.8%
Q4 2022-7.9%-5.1%-15.5%
Q3 2022-10.9%-8.7%+10.9%
Q2 2022-8.3%-9.8%-13.0%
Q1 2022+6.4%+1.9%-1.1%
Q4 2021+8.1%+8.1%+6.6%
Q3 2021+5.0%+6.7%+7.1%
Q2 2021+3.0%+4.3%+9.6%
Q1 2021+13.5%+13.8%+15.3%
Q4 2020-2.5%-3.1%-0.5%
Q3 2020-1.1%-0.3%+9.7%
Q2 2020+11.3%+11.6%+8.6%
Q1 2020+1.0%+8.9%+24.4%
Q4 2019-3.4%-6.4%-33.8%
Q3 2019-7.1%-5.6%-7.4%
Q2 2019+6.5%+9.6%-3.2%
Q1 2019-4.5%-4.8%-10.1%
Q4 2018+5.7%+4.3%+10.6%
Q3 2018+2.8%+5.3%+12.9%
Q2 2018-0.5%-6.0%-8.0%
Q1 2018+1.7%+0.9%+0.6%
Q4 2017-6.1%-6.0%+0.7%
Q3 2017+2.7%+3.1%+9.6%
Q2 2017+2.3%+0.7%-0.3%
Q1 2017-6.5%-8.4%-4.5%
Q4 2016-4.8%-6.2%-10.0%
Q3 2016+4.4%+4.8%+9.1%
Q2 2016-3.9%-6.4%-4.6%
Q1 2016-10.1%
Q4 2015+4.6%
Q3 2015-4.2%
Q2 2015+5.1%
Q1 2015+6.4%
Q4 2014+10.5%
Q3 2014+4.0%
Q2 2014+1.4%
Q1 2014+3.0%
Q4 2013+1.8%
Q3 2013+5.8%
Q2 2013+8.2%
Q1 2013-1.6%
Q4 2012+5.9%
Q3 2012+1.0%
Q2 2012-12.5%
Q1 2012-6.6%
Q4 2011-1.1%
Q3 2011-3.5%
Q2 2011-9.0%
Q1 2010+1.4%
Q1 2011+1.3%
Q4 2010+1.1%
Q4 2008+1.1%
Q3 2010-1.4%
Q3 2009-1.4%
Q2 2009-3.5%
Q2 2010-3.5%
Q4 2009-3.5%

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