Published on 12 Oct 2021 on Zacks via Yahoo Finance
Sealed Air Corporation SEE is benefiting from strong demand for its automated equipment and sustainable packaging solutions. Anticipated benefits from its Reinvent SEE Strategy, focus on acquisitions and product innovations will also stoke growth.The company has a trailing four-quarter average earnings surprise of 10.9%.
Segments Poised to Grow on Solid End-Market Demand
Strong demand for automated equipment and sustainable packaging solutions continues to drive growth in the food and protected packaging segments. In food, the retail channel and protein exports are expected to be solid. Sealed Air has been witnessing higher food service demand compared to last year owing to the reopening of restaurants and other public venues. In fact, its fluid solutions portfolio, which comprises Cryovac Barrier Bags and pouches for condiments, soups and sauces, is seeing growth on this demand rebound. The Food segment’s 50% of sales are generated from these categories. In protective, continued growth in e-commerce and fulfillment, and higher demand in the industrial end markets are likely to fuel growth. E-commerce sales, which contribute around 14% to the company’s sales, have been on the rise amid the stay-at-home scenario.