Sonoco Products (NYSE:SON) Announces Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Key Points

• Sonoco Products missed quarterly earnings expectations: The company reported $1.67 in EPS versus the $1.74 consensus estimate, while revenue of $2.04 billion fell short of the $2.07 billion forecast.
• The stock rose 0.5% to $51.07 despite the earnings miss. Sonoco has a $5.05 billion market capitalization and trades near the lower end of its 52-week range.
• Sonoco maintained its quarterly dividend at $0.54 per share, equivalent to an annualized yield of about 4.2%. Analysts remain cautious, with an overall “Hold” rating and an average price target of $58.89 after several target cuts and downgrades.

Sonoco Products (NYSE:SON - Get Free Report) announced its quarterly earnings results on Wednesday. The industrial products company reported $1.67 earnings per share for the quarter, missing the consensus estimate of $1.74 by ($0.07), FiscalAI reports. Sonoco Products had a return on equity of 16.50% and a net margin of 8.41%. The business had revenue of $2.04 billion during the quarter, compared to the consensus estimate of $2.07 billion.

Sonoco Products Trading Up 0.5%

SON stock traded up $0.24 during midday trading on Wednesday, reaching $51.07. The company's stock had a trading volume of 1,460,815 shares, compared to its average volume of 1,156,364. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.55 and a current ratio of 0.99. The stock has a fifty day simple moving average of $51.82 and a two-hundred day simple moving average of $52.60. Sonoco Products has a 1 year low of $38.65 and a 1 year high of $60.67. The firm has a market capitalization of $5.05 billion, a price-to-earnings ratio of 8.12, a PEG ratio of 1.28 and a beta of 0.35.

Sonoco Products Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be paid a $0.54 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $2.16 dividend on an annualized basis and a yield of 4.2%. Sonoco Products's dividend payout ratio (DPR) is presently 34.34%.

Analyst Ratings Changes

Several research firms recently commented on SON. Truist Financial dropped their price target on Sonoco Products from $68.00 to $62.00 and set a "buy" rating for the company in a research report on Monday, October 12th. Wells Fargo & Company decreased their price objective on Sonoco Products from $56.00 to $53.00 and set an "equal weight" rating on the stock in a research report on Monday. Weiss Ratings lowered Sonoco Products from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, September 11th. UBS Group dropped their target price on Sonoco Products from $61.00 to $51.00 and set a "neutral" rating for the company in a report on Monday, October 5th. Finally, Bank of America cut Sonoco Products from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $69.00 to $60.00 in a report on Thursday, September 3rd. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Sonoco Products has an average rating of "Hold" and an average price target of $58.89.

About Sonoco Products

Sonoco Products Company is a global packaging company headquartered in Hartsville, South Carolina. Founded in 1899 as the Southern Novelty Company, it has developed from a producer of paper cones for the textile industry into a diversified provider of packaging solutions serving consumer, industrial and commercial customers.

The company manufactures a broad range of products, including composite cans and tubes, paperboard packaging, flexible packaging, thermoformed packaging, rigid plastic containers, protective packaging and packaging components.

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