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Sep 30, 2020
Sealed Air Q3 2020 Earnings Report
Sealed Air's Q3 2020 results reflected growth in net sales, net earnings, and adjusted EBITDA.
Key Takeaways
Sealed Air Corporation reported a 2% increase in net sales to $1.2 billion and a 66% increase in net earnings to $132 million for the third quarter of 2020. Adjusted EBITDA increased by 8% to $259 million, and adjusted EPS grew by 28% to $0.82. The company also increased its full-year 2020 financial outlook.
Net sales increased by 2% as reported and 3% on a constant currency basis.
Net earnings increased by 66%, with EPS up by 67%.
Adjusted EBITDA increased by 8%, and adjusted EPS increased by 28%.
The company is expanding its 'SEE Automation' and sustainability solutions.
Revenue by Segment
Forward Guidance
Sealed Air expects net sales of approximately $4.85 billion, Adjusted EBITDA to be approximately $1.04 billion, Adjusted EPS to be approximately $3.05, and free cash flow to be approximately $450 million for the full year 2020.
Positive Outlook
- Net sales are expected to be approximately $4.85 billion, up 1% as reported and up 3% in constant dollars.
- Adjusted EBITDA is expected to be approximately $1.04 billion.
- Adjusted EPS is expected to be approximately $3.05.
- Free cash flow is expected to be approximately $450 million.
- Restructuring payments are now expected to be approximately $85 million.
Challenges Ahead
- Foreign currency is now expected to have a negative impact on net sales of approximately $90 million.
- Adjusted EBITDA guidance now includes an estimated unfavorable currency impact of $20 million.
- The adjusted tax rate is anticipated to be approximately 26%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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