Sealed Air (NYSE: SEE) reported Q3 EPS of $0.82, $0.16 better than the analyst estimate of $0.66. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.19 billion.

• Increasing full year 2020 financial outlook
• Net sales of $1.2 billion, up 2% as reported; up 3% constant currency
• Net earnings of $132 million, up 66%; EPS of $0.85, up 67%
  • Adjusted EBITDA of $259 million, up 8%; Adjusted EPS of $0.82, up 28%
• Year to date cash flow from operations of $410 million, up 63%

“We continue to navigate through the pandemic with a focus on Zero Harm, business continuity and our purpose: ‘to protect, to solve critical packaging challenges, and to leave our world better than we found it’. Our broad portfolio, global scale and agility have enabled us to effectively address evolving demands across our end markets and geographies.

Despite challenges, earnings and cash flow from operations in the first nine months of year are up significantly versus 2019, which is a credit to our people, our customer relationships and the strength and resilience of our business,” said Ted Doheny, Sealed Air’s President and CEO.

“Our performance in 2020 reflects continued execution of our Reinvent SEE business transformation. With markets moving to a more ‘touchless environment’, we are expanding our ‘SEE Automation’ and sustainability solutions, which includes differentiated packaging equipment, services, and materials. The direction we are taking the business is strengthening our global leadership in food safety, minimizing waste and protecting valuable goods.

GUIDANCE:

Sealed Air sees FY2020 EPS of $3.05, versus the consensus of $2.93. Sealed Air sees FY2020 revenue of $4.85 billion, versus the consensus of $4.78 billion.

• For the full year 2020, Sealed Air expects net sales of approximately $4.85 billion, which is up 1% as reported and up 3% in constant dollars. Foreign currency is now expected to have a negative impact on net sales of approximately $90 million. This compares to previous sales guidance of $4.725 billion to $4.775 billion, which included an estimated unfavorable currency impact of approximately $120 million.
• Adjusted EBITDA is expected to be approximately $1.04 billion, which now includes an estimated unfavorable currency impact of $20 million. This compares to previous Adjusted EBITDA guidance of $1.01 billion to $1.03 billion, which included an estimated unfavorable currency impact of approximately $25 million.
• Adjusted EPS is expected to be approximately $3.05, which is based on approximately 156 million shares outstanding and an anticipated Adjusted Tax Rate of approximately 26%. This compares to previous guidance of $2.85 to $2.95 earnings per share and an Adjusted Tax Rate of approximately 27%.
• Free cash flow is expected to be approximately $450 million, which compares to previous guidance of $350 million to $375 million. Capital expenditures are expected to be approximately $175 million compared to the previously provided range of $175 million to $190 million. Restructuring payments are now expected to be approximately $85 million compared to previously provided guidance of approximately $100 million.

For earnings history and earnings-related data on Sealed Air (SEE) click here.