Yahoo Finance Sealed Air Corporation Just Recorded A 14% EPS Beat: Here's What Analysts Are Forecasting Next
Sealed Air Corporation (NYSE:SEE) just released its second-quarter report and things are looking bullish. Sealed Air beat earnings, with revenues hitting US$1.3b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Sealed Air
Following last week's earnings report, Sealed Air's 16 analysts are forecasting 2024 revenues to be US$5.40b, approximately in line with the last 12 months. Statutory per share are forecast to be US$2.53, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$5.40b and earnings per share (EPS) of US$2.60 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The consensus price target held steady at US$42.89, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Sealed Air, with the most bullish analyst valuing it at US$54.00 and the most bearish at US$33.67 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.3% by the end of 2024. This indicates a significant reduction from annual growth of 3.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.1% per year. It's pretty clear that Sealed Air's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sealed Air's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Sealed Air going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Sealed Air that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
