Sealed Air shares deflate after disappointing preliminary 3Q earnings and a slashed full-year outlook

Sealed Air Corp’s (NYSE:SEE) shares fell double following disappointing preliminary third-quarter earnings numbers and a cut to its full-year outlook.

The bubble wrap manufacturer said it expects earnings between $0.60 and $0.65 per share, below analyst expectations of $0.66 per share.

Full-year earnings are expected to be between $2.40 and $2.45 per share, compared with its previous guidance of $2.45 to $2.55 per share. Analysts were expecting earnings of $2.53 per share.

Shares dropped 9.2% to $32.o2 in Thursday morning trading.

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CEO Ted Doheny pointed to higher raw material and freight costs as well as “currency headwinds” as the main factors affecting profitability.

“More specifically to Product Care, we experienced higher absorption costs due to lower global volumes in our utility business, which accounts for 30% of the division’s sales,” said Doheny in a statement.

Sealed Air plans to report its third-quarter earnings before the bell November 1.

The North Carolina-based company manufactures Bubble Wrap packaging and Cryovac food packaging.

Contact Lenore Fedow at [email protected]

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Story by ProactiveInvestors