NYSE$SEE

Sealed Air Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Sealed Air's Q4 2019 performance saw increased net sales and adjusted EBITDA, driven by the Reinvent SEE strategy and the acquisition of Automated Packaging Systems, despite a decline in net earnings due to special items.

Sealed Air reported a 3% increase in net sales to $1.3 billion and a 9% increase in Adjusted EBITDA to $271 million for Q4 2019. Net earnings, however, decreased by 38% to $124 million, or $0.80 per share, due to special items. Adjusted EPS increased by 4% to $0.78.

  • Net sales increased 3% to $1.3 billion.
  • Net earnings decreased 38% to $124 million, or $0.80 per share.
  • Adjusted EPS increased 4% to $0.78.
  • Adjusted EBITDA increased 9% to $271 million.

Headline financials

Total Revenue

$1.3B

Previous: $1.26B+3.1%
EPS (adj)

$0.78

Previous: $0.75+4.0%
Adjusted EBITDA

$271M

Previous: $248M+9.3%
Capital Expenditures

$48.1M

Previous: $53.8M-10.6%
Free Cash Flow

$212M

Previous: $224M-5.5%
Net Income

$124M

Previous: $200M-37.9%
Operating Income

$205M

Previous: $165M+23.9%
Gross Profit

$429M

Previous: $399M+7.6%
Cash & Equivalents

$262M

Previous: $272M-3.4%
Total Assets

$5.77B

Previous: $5.05B+14.2%
Stock-Based Comp

$8.9M

Previous: $6.3M+41.3%

Revenue & EPS history

Sealed Air · Revenue · Quarterly

$1.3B

Q4 2019+3.1%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Sealed Air · $1.3B total across 2 segments · Q4 2019

  • Food
    $760M-1.5%
  • Protective
    $539M+10.3%

Forward guidance

For the full year 2020, Sealed Air expects net sales in the range of $4.9 billion to $4.95 billion, which represents an increase of 2% to 3% growth as reported and 3% to 4% in constant dollars. Adjusted EBITDA is expected to be in the range of $1.01 billion to $1.03 billion. The Company forecasts Adjusted EPS to be in the range of $2.85 to $2.95, which is based on approximately 156 million shares outstanding and an anticipated Adjusted Tax Rate of approximately 27%. Free Cash Flow in 2020 is expected to be approximately $350 million, with capital expenditures of approximately $200 million and Reinvent SEE and other restructuring associated payments of approximately $100 million.

Tailwinds

  • Net sales growth of 2% to 3% as reported.
  • Net sales growth of 3% to 4% in constant dollars.
  • Adjusted EBITDA is expected to be in the range of $1.01 billion to $1.03 billion.
  • Adjusted EPS to be in the range of $2.85 to $2.95.
  • Free Cash Flow in 2020 is expected to be approximately $350 million.

Headwinds

  • Capital expenditures of approximately $200 million.
  • Reinvent SEE and other restructuring associated payments of approximately $100 million.
  • Anticipated Adjusted Tax Rate of approximately 27%.
  • Based on approximately 156 million shares outstanding.
  • No specific negatives were provided for Q4

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 Q4 2019

Historical avgQ4 2019

+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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