Sealed Air said it now expects an unfavorable currency impact of nearly $800 million on its 2015 net sales, compared to previous estimates of about $700 million.
The company said it also expects a negative currency impact of about $125 million on its 2015 adjusted EBITDA, compared to previous estimates of a $110 million impact.
Sealed Air is a packaging company based in Elmwood Park, NJ. The company owns and operates the Cryovac food packaging brand, the Bubble Wrap brand, and the Diversey cleaning and hygiene brand.
About 4.1 million shares of Sealed Air were traded in regular trading hours Friday, well above the company's average trading volume of about 2.3 million shares a day.
TheStreet Ratings team rates SEALED AIR CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEALED AIR CORP (SEE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 39.09% is the gross profit margin for SEALED AIR CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.57% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Containers & Packaging industry and the overall market on the basis of return on equity, SEALED AIR CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Compared to its closing price of one year ago, SEE's share price has jumped by 39.04%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- SEALED AIR CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SEALED AIR CORP increased its bottom line by earning $1.20 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($2.26 versus $1.20).
- SEE, with its decline in revenue, slightly underperformed the industry average of 1.8%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: SEE