SEE - Sealed Air sinks after Q1 miss second straight sharp quarterly drop in volumes

2023-05-02 13:11:08 ET

Sealed Air ( NYSE: SEE ) -11.5% in Tuesday's trading after missing expectations for Q1 adjusted earnings and net sales fell 5% Y/Y to $1.35B, as volumes declined sharply for the second straight quarter.

Sealed Air ( SEE ) reported a 9.3% volume decline in Q1 following a 10.4% drop in Q4, both historically steep declines not experienced by the company since 2008-09.

Q1 net sales in the food packaging segment increased 5.6% Y/Y to $853.1M, with volumes down 2.6%, but net sales in the protective packaging segment plunged 19% to $495.7M, with a 18.2% slump in volumes.

For FY 2023, Sealed Air ( SEE ) continues to guide for adjusted EPS of $3.50-$3.80 on net sales of $5.85B-$6.1B, or a 4%-8% revenue increase which includes a ~6% favorable impact of the Liquibox acquisition.

The results reflect "continued recessionary pressures in the industrial and fulfillment markets and destocking throughout the value chain," Truist Securities said, according to Bloomberg.

More on Sealed Air:

• See financial and valuation comparisons to sector peers
• Sealed Air Raised To Buy At UBS As Inflecting Point Nears
• Stock price return: 16% loss YTD, 34% loss in the past 12 months

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