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Shareholders might have noticed that Sealed Air Corporation (NYSE:SEE) filed its quarterly result this time last week. The early response was not positive, with shares down 3.3% to US$35.40 in the past week. Sealed Air reported US$1.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.63 beat expectations, being 6.0% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sealed Air after the latest results.
Check out our latest analysis for Sealed Air
Following last week's earnings report, Sealed Air's 15 analysts are forecasting 2025 revenues to be US$5.46b, approximately in line with the last 12 months. Per-share earnings are expected to step up 12% to US$3.02. Before this earnings report, the analysts had been forecasting revenues of US$5.47b and earnings per share (EPS) of US$3.04 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$41.63, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sealed Air analyst has a price target of US$54.00 per share, while the most pessimistic values it at US$33.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sealed Air's revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2025 being well below the historical 3.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Sealed Air is also expected to grow slower than other industry participants.