Sonoco Products Co. (NYSE:SON) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Sonoco Products Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 3.85% to $0.50 in the quarter versus EPS of $0.52 in the year-earlier quarter.
Revenue: Decreased 2.74% to $1.18 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sonoco Products Co. reported adjusted EPS income of $0.50 per share. By that measure, the company missed the mean analyst estimate of $0.53. It missed the average revenue estimate of $1.2 billion.
Quoting Management: Sonoco President and Chief Executive Officer Jack Sanders , said, “While base earnings for the first quarter were within our guidance, they were off 4 percent from 2012 due to challenging economic conditions and some operating inefficiencies. Base earnings were negatively impacted by lower volume and higher maintenance, labor, pension and other expenses. Productivity improvements, which were below our historical average, and a slightly positive price/cost relationship only partially offset these negative factors.”
Key Stats (on next page)…
Revenue increased 0.28% from $1.18 billion in the previous quarter. EPS decreased 10.71% from $0.56 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.59 and has not changed. For the current year, the average estimate is a profit of $2.31, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)