Results from Sealed Air may offer a bit of cushion to fears that we are headed for a recession.
On Wednesday, the maker of bubble wrap and other packaging products reported that its fourth quarter earnings rose more than expected. After trending downward for much of the past six months, the company’s shares rose 8% on Wednesday, to nearly $44.
Higher sales in the shipping business is typically considered good news for the economy. Adjusted for one-time charges, Sealed Air (see) made $0.76 per share for the quarter. Analysts had been expecting the company to earn $0.50.
That being said, not all the news from Sealed Air was popping good. The company gave a soft revenue outlook for 2016. It said it expects sales to be $6.8 billion for the year, down from just over $7 billion in 2015.
The Dow Transportation Index, typically considered a bellwether for the economy, is down 6.5% so far this year. Still, that’s slightly better than the Dow Jones Industrial Average, which is down by just over 8%.