NEW YORK (TheStreet) -- Shares of Sealed Air (SEE - Get Report) are diving by 7.14% to $48.91 on heavy trading volume on Thursday afternoon, following weaker-than-expected revenue for the 2016 first quarter.
Before today's market open, the Charlotte, NC-based packaging company reported revenue of $1.59 billion, lower than Wall Street's expectations of $1.61 billion.
Adjusted earnings of 50 cents per share surpassed analysts' estimates of 48 cents per share.
Net sales fell by 8.9% on an as reported basis and 2.4% on a constant dollar basis from last year, the company said. Currency had a negative impact on net sales during the period.
"We delivered first quarter net sales on positive volume and favorable price/mix despite the ongoing economic instability in Latin America," CEO Jerome Peribere said in a statement.
"As we anticipated, adjusted EBITDA was negatively impacted by currency headwinds, divestitures and product rationalization efforts, and formula pricing in our food care division," he added.
For 2016, Sealed Air forecasts earnings per share between $2.52 and $2.60 on revenue of about $6.8 billion, below analysts' projections.
Analysts are looking for earnings of $2.62 per share on revenue of $6.92 billion for the full year.
So far today, roughly 4.17 million of Sealed Air's shares changed hands compared to its average volume of 1.57 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SEE