Sealed Air's Earnings: A Preview

On Tuesday, August 03, Sealed Air SEE will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sealed Air earnings will be near $0.78 per share on sales of $1.28 billion, according to analysts. Sealed Air EPS in the same period a year ago totaled $0.76. Sales were $1.15 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 2.63% increase for the company. Sales would be up 11.21% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Sealed Air were trading at $56.75 as of July 30. Over the last 52-week period, shares are up 56.9%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Sealed Air is scheduled to hold the call at 10:00:00 ET and can be accessed here.