Sonoco Products Earnings: Here’s Why Investors are Buying Shares Now

Sonoco Products Co. (NYSE:SON) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.47%.

Sonoco Products Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.72% to $0.59 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Rose 1.99% to $1.23 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sonoco Products Co. reported adjusted EPS income of $0.59 per share. By that measure, the company beat the mean analyst estimate of $0.58. It beat the average revenue estimate of $1.22 billion.

Quoting Management: Sonoco President and Chief Executive Officer Jack Sanders said, “Overall, we’re pleased with our results for the quarter. We were able to achieve records in sales and gross profits, while delivering base earnings near the high end of our guidance. Despite challenging global economic conditions, base earnings benefited from volume gains, productivity improvements and a positive price/cost relationship. These positive factors were partially offset by higher labor, pension and other operating costs and a higher effective tax rate on base earnings.”

Key Stats (on next page)…

Revenue increased 3.99% from $1.18 billion in the previous quarter. EPS increased 18% from $0.50 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 $0.61 and has not changed. For the current year, the average estimate has moved down from a profit of $2.29 to a profit of $2.28 over the last ninety days.

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