It's been a pretty great week for Sealed Air Corporation (NYSE:SEE) shareholders, with its shares surging 13% to US$30.73 in the week since its latest first-quarter results. It looks like a credible result overall - although revenues of US$1.3b were what the analysts expected, Sealed Air surprised by delivering a (statutory) profit of US$0.78 per share, an impressive 22% above what was forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
We've discovered 1 warning sign about Sealed Air. View them for free.
Following last week's earnings report, Sealed Air's 16 analysts are forecasting 2025 revenues to be US$5.31b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 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. So the consensus seems to have become somewhat more optimistic on Sealed Air's earnings potential following these results.
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. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Sealed Air analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$31.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sealed Air shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2025. This indicates a significant reduction from annual 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.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sealed Air's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Sealed Air analysts - going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Sealed Air has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.