Sealed Air Corporation SEE is scheduled to report first-quarter 2025 results on May 6, before the opening bell.

The Zacks Consensus Estimate for SEE’s first-quarter net sales is pegged at $1.27 billion, indicating a 4.6% decline from the year-ago reported figure.

The consensus estimate for earnings is pinned at 67 cents per share. The Zacks Consensus Estimate for SEE’s first-quarter earnings has moved down 1.5% in the past 60 days. The estimate indicates a year-over-year decline of 14.1%.

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SEE’s Solid Earnings Surprise History

Sealed Air’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 27.1%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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What the Zacks Model Indicates for Sealed Air

Our model predicts an earnings beat for Sealed Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.

Earnings ESP: Sealed Air has an Earnings ESP of +0.12%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Factors Likely to Have Shaped SEE’s Q1 Performance

Sealed Air’s Protective segment experienced lower volumes for 12 consecutive quarters. The weakness is expected to persist in 2025. For the Protective segment, our model indicates a year-over-year volume decline of 4.2% for the first quarter.

After witnessing lower volumes for seven quarters, the Food segment volume returned to growth in the first quarter of 2024, driven by solid demand for bags, case-ready and automated solutions. The impacts of the same are expected to get reflected in the first-quarter results. Our model projects the Food segment’s volumes to be flat year over year in the first quarter.

Our model estimate for the Food segment’s first-quarter net sales is pegged at $841 million, suggesting a dip of 3.1% from the prior-year period’s reported figure. Pricing is expected to inch up 0.2%, per our model. Our estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stands at $194 million, indicating a year-over-year rise of 2.5%.

Our estimate for the Protective segment’s first-quarter net sales is $419 million, implying a year-over-year dip of 9.2% due to the volume decline and pricing impacts of negative 2.6%. Our estimate for the segment’s adjusted EBITDA is pegged at $74 million, suggesting a year-over-year decrease of 17.5%.

Sealed Air’s overall volumes are expected to dip 1.4%, per our model. We expect pricing impacts of 0.8% for the quarter.

However, savings from the company’s Reinvent SEE Strategy have been driving productivity gains and mitigating supply-chain challenges. This is expected to have driven the operating margin performance in the March-ended quarter.

Sealed Air Stock’s Price Performance

In the past year, SEE shares have lost 20.5% compared with the industry’s 10.5% decline.

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Other Stocks to Consider

Here are some other stocks with the right combination of elements to post an earnings beat in their upcoming releases.

Emerson Electric Co. EMR, expected to release earnings on May 7, currently has an Earnings ESP of +1.96% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Emerson Electric’s earnings for the second quarter of fiscal 2025 is pegged at $1.42 per share, indicating year-over-year growth of 4.4%. EMR has a trailing four-quarter average surprise of 4.3%.

Trimble Inc. TRMB, anticipated to release earnings on May 7, currently has an Earnings ESP of +5.44% and a Zacks Rank of 3.

The consensus estimate for Trimble’s earnings for the first quarter of 2025 is pegged at 59 cents per share, indicating a year-over-year dip of 7.8%. Trimble has a trailing four-quarter average surprise of 7.8%.

Kinross Gold Corporation KGC, scheduled to release first-quarter earnings on May 6, has an Earnings ESP of +11.07% and a Zacks Rank #3.

The Zacks Consensus Estimate for Kinross Gold's earnings for the first quarter of 2025 is pegged at 21 cents, indicating a surge of 111% from the year-ago quarter’s actual. KGC has a trailing four-quarter average earnings surprise of 23.6%.

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Emerson Electric Co. (EMR) : Free Stock Analysis Report

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Kinross Gold Corporation (KGC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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