Sonoco Products (NYSE:SON) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Sonoco Products beat quarterly expectations, reporting EPS of $1.51 versus the $1.47 consensus and revenue of $1.89 billion, slightly ahead of estimates.
• The company raised its FY 2026 guidance to an EPS range of 5.800-6.200, signaling improved expectations for the year ahead.
• Shares rose after the report, while Sonoco also declared a $0.54 quarterly dividend to be paid on September 10, equivalent to a 3.9% annualized yield.

Sonoco Products (NYSE:SON - Get Free Report) posted its quarterly earnings data on Wednesday. The industrial products company reported $1.51 EPS for the quarter, beating the consensus estimate of $1.47 by $0.04, Zacks reports. The business had revenue of $1.89 billion during the quarter, compared to analyst estimates of $1.88 billion. Sonoco Products had a net margin of 13.57% and a return on equity of 16.50%. Sonoco Products updated its FY 2026 guidance to 5.800-6.200 EPS.

Sonoco Products Price Performance

Shares of SON traded up $0.47 on Wednesday, reaching $55.18. The stock had a trading volume of 1,317,583 shares, compared to its average volume of 1,184,849. The firm has a market capitalization of $5.46 billion, a PE ratio of 5.41, a PEG ratio of 1.19 and a beta of 0.37. The company has a quick ratio of 0.54, a current ratio of 0.96 and a debt-to-equity ratio of 0.97. The firm has a 50-day moving average of $51.68 and a 200 day moving average of $51.80. Sonoco Products has a twelve month low of $38.65 and a twelve month high of $58.44.

Sonoco Products Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $0.54 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $2.16 dividend on an annualized basis and a yield of 3.9%. Sonoco Products's dividend payout ratio (DPR) is 21.18%.

Insider Activity at Sonoco Products

In related news, insider James A. Harrell III bought 6,753 shares of Sonoco Products stock in a transaction that occurred on Monday, April 27th. The shares were purchased at an average price of $50.37 per share, with a total value of $340,148.61. Following the purchase, the insider owned 10,070 shares in the company, valued at $507,225.90. This represents a 203.59% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Paul Joachimczyk bought 8,058 shares of the stock in a transaction on Friday, April 24th. The shares were bought at an average price of $49.64 per share, for a total transaction of $399,999.12. Following the acquisition, the chief financial officer owned 28,558 shares in the company, valued at $1,417,619.12. The trade was a 39.31% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.98% of the company's stock.

Institutional Trading of Sonoco Products

Several institutional investors and hedge funds have recently made changes to their positions in SON. Hsbc Holdings PLC raised its holdings in shares of Sonoco Products by 5.2% during the 4th quarter. Hsbc Holdings PLC now owns 6,073 shares of the industrial products company's stock valued at $265,000 after buying an additional 299 shares during the period. CIBC Private Wealth Group LLC boosted its holdings in Sonoco Products by 5.3% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 6,006 shares of the industrial products company's stock worth $259,000 after acquiring an additional 304 shares during the period. Parallel Advisors LLC grew its position in Sonoco Products by 73.5% in the fourth quarter. Parallel Advisors LLC now owns 1,320 shares of the industrial products company's stock valued at $58,000 after acquiring an additional 559 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its position in Sonoco Products by 7.2% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 8,873 shares of the industrial products company's stock valued at $387,000 after acquiring an additional 594 shares in the last quarter. Finally, Vident Advisory LLC raised its stake in shares of Sonoco Products by 12.6% during the second quarter. Vident Advisory LLC now owns 5,380 shares of the industrial products company's stock valued at $234,000 after purchasing an additional 600 shares during the period. 77.69% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on SON shares. Robert W. Baird reduced their price objective on Sonoco Products from $60.00 to $55.00 and set a "neutral" rating on the stock in a research note on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft initiated coverage on Sonoco Products in a research note on Wednesday, April 1st. They set a "buy" rating and a $63.00 target price for the company. Truist Financial decreased their price objective on shares of Sonoco Products from $65.00 to $64.00 and set a "buy" rating for the company in a research note on Wednesday, July 15th. Wall Street Zen downgraded Sonoco Products from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Weiss Ratings lowered Sonoco Products from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday. Five investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $61.33.

Sonoco Products Company Profile

Sonoco Products Company NYSE: SON is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency.

With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers.

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