Sonoco Products Co. Earnings: Everything You Must Know Now

Sonoco Products Co. (NYSE:SON) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.

Sonoco Products Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.82% to $0.56 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 4.1% to $1.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sonoco Products Co. reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $0.54. It missed the average revenue estimate of $1.18 billion.

Quoting Management: Commenting on the Company’s fourth quarter results, Chairman and Chief Executive Officer Harris E. DeLoach Jr. said, “Base earnings increased 21 percent over last year’s fourth quarter while gross profit improved 10 percent and base earnings before interest and taxes (EBIT) gained 7 percent. A lower effective tax rate drove a significant part of the base earnings improvement. The improvement in base EBIT stemmed from much stronger productivity, the addition of Tegrant and modest volume gains. These favorable factors were partially offset by a slightly negative price/cost relationship and higher maintenance, labor, pension, interest and other expenses.
“Operating profits from our Paper and Industrial Converted Products segment rose 23 percent in the fourth quarter as the segment generated its strongest fourth quarter earnings performance since 2007. The segment’s improvement was due to higher volume and strong productivity gains. Tons produced in the Company’s North America paperboard mills increased 7 percent with less downtime that aided productivity and helped offset a negative price/cost relationship stemming from rising recovered paper prices.”

Key Stats (on next page)…

Revenue decreased 1.64% from $1.2 billion in the previous quarter. EPS increased 1.82% from $0.55 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.57 to a profit $0.55. For the current year, the average estimate is a profit of $2.19, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)