CHARLOTTE, N.C. - Sealed Air Corporation (NYSE: NYSE:SEE) delivered a robust financial performance for the fourth quarter, surpassing Wall Street's expectations with an adjusted EPS of $0.88, a significant $0.24 higher than the analyst consensus of $0.64.
The company's revenue also exceeded forecasts, reaching $1.38 billion against the anticipated $1.36 billion. The positive earnings report sent SEE's stock up 3% following the announcement, though it is now trading up around 1%.
Sealed Air's fourth-quarter results reflect a 2% decline in reported net sales compared to the same period last year, stabilizing at $1.4 billion when adjusted for constant currency.
Despite the reported net earnings increase of 32% to $125 million, the adjusted EPS marked an 11% decrease. The full-year figures showed a 3% decrease in reported net sales, totaling $5.5 billion, with net earnings witnessing a 31% drop to $339 million. Adjusted EBITDA for the quarter fell by 8% to $274 million, and the full year saw a 9% decrease to $1.107 billion.
The company's leadership highlighted the alignment of the fourth-quarter results with their expectations. "We ramped our CTO2Grow initiatives to improve the competitiveness of our businesses and help offset continued weakness in our end-markets," said Emile Chammas, SEE's Interim Co-CEO and COO. SEE's management remains focused on transforming the business, improving fundamentals, and strengthening the balance sheet, as noted by Dustin Semach, SEE's Interim Co-CEO and CFO.
For the full year 2024, Sealed Air forecasts an adjusted EPS range of $2.65 to $3.05, with the midpoint below the analyst consensus of $3.04. The company also anticipates net sales to be between $5.2 billion and $5.6 billion, with the midpoint slightly below the consensus of $5.502 billion.
Despite the challenges faced in the end-markets, SEE's management remains optimistic about the recovery in the second half of the year. The company's free cash flow for 2023 increased by 24%, excluding certain tax-related payments, highlighting their strong financial discipline and operational efficiency.
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