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Sealed Air Declared Dividend of $0.16 Per Share

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Price movement 

Sealed Air Corporation (SEE) has a market cap of $9.0 billion. It fell by 0.26% to close at $45.69 per share on July 7, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 1.2%, -0.63%, and 3.1%, respectively, on the same day. This means that SEE was trading 1.5% below its 20-day moving average, 2.5% below its 50-day moving average, and 0.25% below its 200-day moving average on July 7.

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Related ETF and peers

The Materials Select Sector SPDR ETF (XLB) invests 1.8% of its holdings in Sealed Air. The ETF tracks a market-cap-weighted index of US basic materials companies. The fund includes only the materials components of the S&P 500. The YTD price movement of XLB was 6.4% on July 7.

The iShares Russell 3000 ETF (IWV) invests 0.04% of its holdings in Sealed Air. The ETF tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps.

The market caps of Sealed Air’s competitors are as follows:

  • Bemis Company (BMS)—$4.9 billion
  • AptarGroup (ATR)—$5.0 billion
  • Sonoco Products (SON)—$5.0 billion

Sealed Air’s dividend and performance in fiscal 1Q16

Sealed Air Corporation has declared a quarterly cash dividend of $0.16 per share on its common stock. The dividend will be paid on September 16, 2016, to shareholders on record at the close of business on September 2, 2016.

Sealed Air (SEE) reported fiscal 1Q16 net sales of $1.6 billion, a fall of 8.9% from its net sales of $1.7 billion in fiscal 1Q15. In fiscal 1Q16, SEE reported a stock appreciation rights expense and foreign exchange income related to Venezuelan subsidiaries of $0.3 million and -$1.7 million, respectively, as compared to $2.9 million and $0.8 million in fiscal 1Q15.

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Net income and EPS

SEE’s net income fell to $91.9 million in fiscal 1Q16, as compared to $97.2 million in fiscal 1Q15. It reported EPS (earnings per share) of $0.46 in both fiscal 1Q16 and fiscal 1Q15.

Sealed Air’s cash and cash equivalents fell by 11.9%, and its inventories rose by 11.5% between fiscals 4Q15 and 1Q16. Its current ratio and debt-to-equity ratio fell to 1.22x and 12.4x, respectively, in fiscal 1Q16, as compared with 1.23x and 13.0x in fiscal 4Q15.

Projections

The company has affirmed the following projections for fiscal 2016:

  • net sales of ~$6.8 billion
  • adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) in the range of $1.17–$1.19
  • adjusted EPS in the range of $2.52–$2.60, excluding the impact of special items
  • adjusted tax rate of 24%
  • free cash flow of ~$550 million, which includes capital expenditures of ~$275 million and cash restructuring payments of ~$110 million

Now we’ll discuss Packaging Corporation of America.

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