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Shareholders of Sealed Air Corporation (NYSE:SEE) will be pleased this week, given that the stock price is up 13% to US$30.73 following its latest first-quarter results. Revenues were US$1.3b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.78, an impressive 22% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, Sealed Air's 16 analysts currently expect revenues in 2025 to be US$5.31b, approximately in line with the last 12 months. Per-share earnings are expected to leap 45% to US$3.00. In the lead-up to this report, the analysts had been modelling revenues of US$5.32b and earnings per share (EPS) of US$2.88 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Sealed Air
There's been no major changes to the consensus price target of US$37.15, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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$50.00 and the most bearish at US$31.00 per share. 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.
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. We would highlight that revenue is expected to reverse, with a forecast 0.5% annualised decline to the end of 2025. That is a notable change from historical growth of 2.2% 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 7.0% per year. It's pretty clear that Sealed Air's revenues are expected to perform substantially worse than the wider industry.