Sealed Air Shines In Q2 On Strength In Food Business, Shares Move Higher
Sealed Air Corporation (NYSE:SEE) shares are trading higher after the company reported second quarter results.
The company reported adjusted earnings per share of 83 cents, beating the street view of 64 cents. The company reported quarterly revenues of $1.345 billion, beating the analyst consensus of $1.307 billion.
Revenues decreased 3% as reported, with EMEA decreasing 5%, APAC decreasing 3% and the Americas decreasing 2%.
Net sales decreased $24 million, or 2%, on a constant dollar basis.
The current year results were impacted by $27 million of Special Items expense, including $9 million of restructuring and other associated costs related to the cost take-out to grow program.
Adjusted EBITDA was $285 million, or 21.2% of net sales, as compared to $280 million, or 20.3% in the prior year.
The increase in Adjusted EBITDA was primarily due to lower operating costs driven by productivity benefits and higher volumes, partially offset by unfavorable net price realization.
“Our second quarter results were ahead of our expectations, reflecting strong sequential demand within our Food business, accelerated benefits from our CTO2Grow program that more than offset the continued pressure within our Protective business,” said Patrick Kivits, Sealed Air’s CEO.
Total debt was $4.6 billion as of June 30, with approximately $1.4 billion of available liquidity.
Outlook: The company sees FY24 revenues of $5.2 billion to $5.6 billion versus the $5.4 billion estimate (prior view: $5.2 billion to $5.6 billion). It expects an adjusted EPS of $2.65 to $3.05 versus an estimate of $2.88.
SEE Price Action: Sealed Air shares are trading higher by 6.11% to $36.49 at last check Thursday.
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