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Sealed Air Declares a Dividend of $0.16 Per Share

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Price movement

Sealed Air (SEE) has a market cap of $8.9 billion. It fell 0.07% to close at $45.22 per share on October 6, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.1%, -4.8%, and 2.4%, respectively, on the same day.

SEE is trading 1.6% below its 20-day moving average, 2.9% below its 50-day moving average, and 1.4% below its 200-day moving average.

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Related ETFs 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 11.5% on October 6.

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 microcaps.

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

  • Bemis Company (BMS) — $4.7 billion
  • AptarGroup (ATR) — $4.8 billion
  • Sonoco Products (SON) — $5.1 billion

Sealed Air declares dividend

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

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Performance in 2Q16

Sealed Air reported 2Q16 net sales of $1.7 billion, a fall of 3.2% compared to $1.8 billion in 2Q15. It reported charges of $46.0 million related to its Venezuelan subsidiaries in 2Q16. The company’s gross profit margin and operating profit rose 3.0% and 5.6%, respectively, in 2Q16, compared to the same period last year.

Its net income and EPS (earnings per share) rose to $49.6 million and $0.25, respectively, in 2Q16, compared to $28.1 million and $0.13, respectively, in 2Q15. It reported adjusted EPS of $0.65 in 2Q16, a rise of 8.3% compared to 2Q15.

Sealed Air’s cash and cash equivalents fell 17.0%, and its inventories rose 13.2% in 2Q16 compared to 4Q15. Its current ratio rose to 1.25x, and its debt-to-equity ratio fell to 11.8x in 2Q16, compared to its current and debt-to-equity ratios of 1.23x and 13.0x, respectively, in 4Q15.

Projections

Sealed Air has made the following projections for 2016:

  • net sales of ~$6.9 billion
  • adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $1.17 billion–$1.18 billion
  • adjusted EPS at the high end of $2.52–$2.60, excluding the impact of special items
  • adjusted tax rate of 24%
  • free cash flow of ~$550 million, including capital expenditure of ~$275 million and cash restructuring payments of ~$110 million

In the next article, we’ll take a look at Nike (NKE).

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