Sealed Air (SEE) Tops Q1 EPS by 15c, Revenues Beat; Suspends FY20 Guidance

Sealed Air (NYSE: SEE) reported Q1 EPS of $0.73, $0.15 better than the analyst estimate of $0.58. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.13 billion.

• Net sales increased 6% to $1.2 billion
• Net earnings of $115 million, up 78%, or $0.74 per share, up 80%
• Adjusted EBITDA increased 17% to $253 million
• Adjusted EPS increased 24% to $0.73 per share

“Our purpose ‘to protect, to solve critical packaging challenges, and to leave our world better than we found it’ is more powerful now than ever as we navigate through the COVID-19 pandemic.

Our teams have taken preemptive measures to keep people out of harm’s way and enable business continuity. We have been rapidly responding to the surge in demand for essential goods such as packaged foods for retail, consumer staples and medical supplies, while managing the slowdown in food services and industrial manufacturing.

Our first quarter results reflect our teams’ agility to respond to the unprecedented circumstances and the continued execution of our strategy. These efforts led to a strong first quarter with net sales increasing 6% and Adjusted EBITDA increasing 17%, compared to the first quarter of 2019,” said Ted Doheny, Sealed Air’s President and CEO.

“Given the uncertainty in the markets we serve, we are suspending our full year 2020 guidance. Our focus is on zero harm, business continuity and leveraging our Reinvent SEE transformation to ensure we emerge from this crisis as a better and stronger company. We are prioritizing investments to maximize cash flow and maintain a healthy balance sheet. Our capabilities and business model coupled with our strong liquidity will enable us to effectively manage through the changing environment.

I am confident that our strategy to advance automation in support of a more touchless and digital world will create value. This will enhance our ability to deliver on our core competencies of maximizing food safety, minimizing food waste and protecting valuable goods,” continued Doheny.

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

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