NYSE$SEE

Sealed Air Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Sealed Air's financial performance reflected resilience amidst the COVID-19 pandemic, with adjusted EBITDA increasing and strategic investments being accelerated.

Sealed Air reported Q2 2020 results with net sales of $1.2 billion, a decrease of 1% as reported but an increase of 3% on a constant currency basis. Net earnings increased approximately 300% to $100 million, or $0.64 per share. Adjusted EBITDA rose by 10% to $260 million, while adjusted EPS decreased by 5% to $0.76 per share.

  • Net sales reached $1.2 billion, down 1% as reported but up 3% in constant currency.
  • Net earnings surged to $100 million, or $0.64 per share, marking an approximate 300% increase.
  • Adjusted EBITDA increased by 10% to $260 million.
  • The company re-issued full-year 2020 guidance, reflecting confidence in customer demand for essential packaging solutions.

Headline financials

Total Revenue

$1.15B

Previous: $1.16B-0.8%
EPS (adj)

$0.76

Previous: $0.80-5.0%
Adjusted EBITDA

$260M

Previous: $237M+9.7%
Capital Expenditures

-$83.6M

Previous: -$94.5M+11.5%
Free Cash Flow

$129M

Previous: $74.8M+73.0%
Net Income

$100M

Previous: $33.2M+201.5%
Operating Income

$186M

Previous: $78.4M+137.2%
Gross Profit

$390M

Previous: $378M+3.1%
Cash & Equivalents

$290M

Previous: $222M+30.4%
Total Assets

$5.76B

Previous: $5.22B+10.3%
Stock-Based Comp

$10.3M

Previous: $4.8M+114.6%

Revenue & EPS history

Sealed Air · Revenue · Quarterly

$1.15B

Q2 2020-0.8%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Sealed Air · $1.15B total across 2 segments · Q2 2020

  • Food
    $673M-5.3%
  • Protective
    $478M+6.2%

Forward guidance

Sealed Air expects net sales in the range of $4.725 billion to $4.775 billion, representing a (1%) to flat as reported and 1% to 2% growth in constant dollars. Adjusted EBITDA is expected to be in the range of $1.01 billion to $1.03 billion. Adjusted EPS is expected to be in the range of $2.85 to $2.95. Free cash flow is expected to be in the range of $350 million to $375 million.

Tailwinds

  • Net sales are projected between $4.725B and $4.775B, indicating a potential for growth in constant dollars.
  • Adjusted EBITDA is anticipated to be between $1.01B and $1.03B.
  • Adjusted EPS is forecasted to be in the range of $2.85 to $2.95.
  • Free cash flow is expected to range from $350M to $375M.
  • Company does not have any debt maturities until August 2022.

Headwinds

  • Foreign currency is expected to negatively impact net sales by approximately $120 million.
  • Foreign currency is now expected to have a negative impact on Adjusted EBITDA of approximately $25 million.
  • Full year 2020, Sealed Air now expects net sales in the range of $4.725 billion to $4.775 billion, which represents (1%) to flat as reported
  • Decline in organic volume of $49 million or 4%.
  • North America, EMEA and South America declined 6%, 5% and 1%, respectively.

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 Q2 2020

Historical avgQ2 2020

+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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