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Industrial Packaging Stocks Q4 Earnings: Sealed Air (NYSE:SEE) Best of the Bunch

SEE Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how industrial packaging stocks fared in Q4, starting with Sealed Air (NYSE: SEE).

Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.

The 8 industrial packaging stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 0.8%.

While some industrial packaging stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.

Best Q4: Sealed Air (NYSE: SEE)

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Sealed Air reported revenues of $1.37 billion, flat year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.

"During the fourth quarter, we completed the reorganization into two market-focused businesses, Food and Protective, and had a strong finish to the year," said Dustin Semach, Sealed Air's President and CEO.

Sealed Air Total Revenue

Sealed Air achieved the biggest analyst estimates beat but had the weakest full-year guidance update of the whole group. The stock is up 4.7% since reporting and currently trades at $33.61.

Is now the time to buy Sealed Air? Access our full analysis of the earnings results here, it’s free.

Crown Holdings (NYSE: CCK)

Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.

Crown Holdings reported revenues of $2.90 billion, up 1.6% year on year, in line with analysts’ expectations. The business had a satisfactory quarter with EPS guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ constant currency revenue estimates.

Crown Holdings Total Revenue

The market seems content with the results as the stock is up 3.5% since reporting. It currently trades at $88.06.

Is now the time to buy Crown Holdings? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: International Paper (NYSE: IP)

Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.

International Paper reported revenues of $4.58 billion, flat year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

International Paper delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.1% since the results and currently trades at $55.71.

Read our full analysis of International Paper’s results here.

Avery Dennison (NYSE: AVY)

Founded as Kum Kleen Products, Avery Dennison (NYSE: AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.

Avery Dennison reported revenues of $2.19 billion, up 3.6% year on year. This number was in line with analysts’ expectations. However, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations.

The stock is down 1.7% since reporting and currently trades at $189.48.

Read our full, actionable report on Avery Dennison here, it’s free.

Silgan Holdings (NYSE: SLGN)

Established in 1987, Silgan Holdings (NYSE: SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Silgan Holdings reported revenues of $1.41 billion, up 5.3% year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ adjusted operating income estimates.

The stock is up 3.2% since reporting and currently trades at $54.72.

Read our full, actionable report on Silgan Holdings here, it’s free.


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