Sonoco Products (NYSE:SON) Issues Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Sonoco Products reported quarterly earnings of $1.92 per share, missing the analyst consensus estimate of $2.03 by $0.11.
• The company announced a quarterly dividend of $0.53 per share, with a dividend yield of 5.1% and a payout ratio of 37.99%.
• Analysts have mixed ratings for Sonoco, with a consensus target price of $54.50, indicating moderate optimism about the stock's future performance.

Sonoco Products (NYSE:SON - Get Free Report) issued its quarterly earnings data on Wednesday. The industrial products company reported $1.92 EPS for the quarter, topping analysts' consensus estimates of $1.91 by $0.01, Zacks reports. Sonoco Products had a return on equity of 20.46% and a net margin of 8.35%.The firm had revenue of $2.13 billion during the quarter, compared to analyst estimates of $2.18 billion. During the same period in the previous year, the company posted $1.49 EPS. The company's revenue for the quarter was up 57.3% on a year-over-year basis. Sonoco Products updated its FY 2025 guidance to 5.650-5.75 EPS.

Sonoco Products Price Performance

Shares of NYSE SON opened at $41.57 on Thursday. The company has a debt-to-equity ratio of 1.53, a current ratio of 1.25 and a quick ratio of 0.72. Sonoco Products has a 1-year low of $39.13 and a 1-year high of $53.69. The business has a 50-day moving average of $44.57 and a 200-day moving average of $44.93. The company has a market capitalization of $4.10 billion, a price-to-earnings ratio of 7.45, a PEG ratio of 0.68 and a beta of 0.68.

Sonoco Products Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 10th. Shareholders of record on Monday, November 10th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date of this dividend is Monday, November 10th. Sonoco Products's payout ratio is 37.99%.

Institutional Investors Weigh In On Sonoco Products

Several large investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC raised its holdings in shares of Sonoco Products by 315.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,587 shares of the industrial products company's stock valued at $69,000 after purchasing an additional 1,205 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in Sonoco Products by 221.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 3,030 shares of the industrial products company's stock worth $132,000 after purchasing an additional 2,086 shares during the last quarter. Vident Advisory LLC grew its position in shares of Sonoco Products by 12.6% during the 2nd quarter. Vident Advisory LLC now owns 5,380 shares of the industrial products company's stock worth $234,000 after purchasing an additional 600 shares in the last quarter. Orion Porfolio Solutions LLC grew its holdings in shares of Sonoco Products by 28.1% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 9,613 shares of the industrial products company's stock worth $419,000 after purchasing an additional 2,111 shares in the last quarter. Finally, FORA Capital LLC acquired a new stake in shares of Sonoco Products during the 2nd quarter worth approximately $442,000. 77.69% of the stock is owned by institutional investors.

Analyst Ratings Changes

SON has been the topic of a number of research analyst reports. Bank of America restated a "neutral" rating and set a $56.00 price objective on shares of Sonoco Products in a research report on Thursday, October 9th. Truist Financial reduced their price target on Sonoco Products from $58.00 to $57.00 and set a "buy" rating on the stock in a report on Monday, October 13th. Wells Fargo & Company dropped their target price on shares of Sonoco Products from $55.00 to $50.00 and set an "overweight" rating on the stock in a report on Wednesday, October 15th. Citigroup dropped their target price on Sonoco Products from $56.00 to $55.00 and set a "buy" rating on the stock in a research note on Monday, September 29th. Finally, UBS Group decreased their target price on shares of Sonoco Products from $50.00 to $46.00 and set a "neutral" rating for the company in a research report on Monday, October 6th. Four investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $54.50.

Sonoco Products Company Profile

Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products.