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Dec 31, 2020
Sealed Air Q4 2020 Earnings Report
Sealed Air reported a 3% increase in net sales and a 14% increase in adjusted EPS for Q4 2020.
Key Takeaways
Sealed Air reported strong Q4 2020 results, with net sales increasing by 3% and adjusted EPS increasing by 14%. The company's performance was driven by strength in food retail, e-commerce, and automated equipment. They delivered Adjusted EBITDA growth of 9% and Adjusted EBITDA to free cash flow conversion greater than 50%.
Net sales increased 3% to $1.3 billion.
Net earnings of $138 million, $0.88 per share increased 10%.
Adjusted EPS increased 14% to $0.89.
Adjusted EBITDA increased 3% to $279 million.
Revenue by Segment
Forward Guidance
For the full year 2021, Sealed Air expects net sales in the range of $5.1 billion to $5.2 billion and Adjusted EBITDA is expected to be in the range of $1.10 billion to $1.13 billion.
Positive Outlook
- Net sales growth of 4.5% to 6.5% as reported.
- Net sales growth of 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.
- Favorable currency translation of approximately 2%.
- Adjusted EPS to be in the range of $3.25 to $3.40.
Challenges Ahead
- Based on approximately 157 million shares outstanding.
- Anticipated Adjusted Tax Rate of 26% to 27%.
- Free Cash Flow in 2021 is expected to be $500 million to $550 million.
- Capital expenditures of approximately $210 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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