Sealed Air (NYSE: SEE) reported Q4 EPS of $0.88, $0.12 better than the analyst estimate of $0.76. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.3 billion.

• Provides 2021 Outlook
• Net sales increased 3% to $1.3 billion in Q4 and 2% to $4.9 billion in 2020
• Q4 Net earnings of $138 million, $0.88 per share increased 10%
• 2020 Net earnings of $484 million, $3.10 per share increased 64%
  • Adjusted EPS increased 14% to $0.89 in Q4 and 13% to $3.19 in 2020
  • Adjusted EBITDA increased 3% to $279 million in Q4 and 9% to $1,051 million in 2020
• Net cash provided by operating activities of $737 million increased 44% in 2020
  • Free cash flow of $556 million increased 73% in 2020

“Throughout 2020, we focused on business continuity and delivering on our purpose: ‘to protect, to solve critical packaging challenges, and to leave our world better than we found it’. The resiliency and commitment of our people coupled with our broad portfolio and global scale enabled us to overcome many challenges and deliver strong results.

We delivered Adjusted EBITDA growth of 9% and Adjusted EBITDA to free cash flow conversion greater than 50%. These results demonstrate execution of our automation and sustainability strategy, fueled by our Reinvent SEE business transformation,” said Ted Doheny, Sealed Air\'s President and CEO.

“Market uncertainties persist in 2021, yet we expect to deliver continued sales and Adjusted EBITDA growth and another year of robust cash generation. We are leading the packaging industry by maximizing food safety and protecting goods, eliminating waste and investing in a circular economy, and accelerating a \'touchless\' and digital world,” continued Doheny.

GUIDANCE:

Sealed Air sees FY2021 EPS of $3.25-$3.40, versus the consensus of $3.21. Sealed Air sees FY2021 revenue of $5.1-5.2 billion, versus the consensus of $5.04 billion.

For the full year 2021, Sealed Air expects net sales in the range of $5.1 billion to $5.2 billion, which represents an increase of 4.5% to 6.5% growth as reported and 2.5% to 4.5% in constant dollars. Adjusted EBITDA is expected to be in the range of $1.10 billion to $1.13 billion, which includes favorable currency translation of approximately 2%. The Company forecasts Adjusted EPS to be in the range of $3.25 to $3.40, which is based on approximately 157 million shares outstanding and an anticipated Adjusted Tax Rate of 26% to 27%.

Free Cash Flow in 2021 is expected to be $500 million to $550 million, with capital expenditures of approximately $210 million and Reinvent SEE restructuring and associated payments of approximately $40 million.

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