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

Sonoco Products (NYSE:SON - Get Free Report) announced its quarterly earnings results on Wednesday. The industrial products company reported $1.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.44 by ($0.07), Zacks reports. The business had revenue of $1.91 billion during the quarter, compared to analyst estimates of $1.92 billion. Sonoco Products had a net margin of 8.35% and a return on equity of 22.24%. The business's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period last year, the company earned $1.28 earnings per share. Sonoco Products updated its FY 2025 guidance to 6.000-6.2 EPS.

Sonoco Products Stock Down 0.7%

Shares of Sonoco Products stock traded down $0.34 during trading on Friday, reaching $48.24. The stock had a trading volume of 505,573 shares, compared to its average volume of 846,025. The company has a market capitalization of $4.76 billion, a price-to-earnings ratio of 8.65, a P/E/G ratio of 0.63 and a beta of 0.68. The stock has a fifty day moving average price of $45.52 and a two-hundred day moving average price of $45.97. Sonoco Products has a 52 week low of $39.46 and a 52 week high of $56.77. The company has a current ratio of 0.80, a quick ratio of 0.51 and a debt-to-equity ratio of 2.02.

Sonoco Products Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th will be issued a dividend of $0.53 per share. The ex-dividend date is Friday, August 8th. This represents a $2.12 annualized dividend and a yield of 4.39%. Sonoco Products's dividend payout ratio is presently 137.66%.

Insider Activity at Sonoco Products

In related news, CEO R. Howard Coker acquired 20,000 shares of Sonoco Products stock in a transaction on Thursday, May 1st. The stock was purchased at an average cost of $41.17 per share, with a total value of $823,400.00. Following the completion of the transaction, the chief executive officer directly owned 502,365 shares in the company, valued at $20,682,367.05. This trade represents a 4.15% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Robert R. Hill, Jr. purchased 5,475 shares of the business's stock in a transaction that occurred on Wednesday, April 30th. The stock was bought at an average price of $40.34 per share, with a total value of $220,861.50. Following the completion of the purchase, the director owned 29,540 shares of the company's stock, valued at $1,191,643.60. This trade represents a 22.75% increase in their position. The disclosure for this purchase can be found here. Over the last quarter, insiders have purchased 27,721 shares of company stock valued at $1,144,366. 0.74% of the stock is owned by insiders.

Hedge Funds Weigh In On Sonoco Products

A number of hedge funds have recently added to or reduced their stakes in SON. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Sonoco Products by 44.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,093 shares of the industrial products company's stock valued at $2,319,000 after acquiring an additional 15,079 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Sonoco Products by 80.8% during the first quarter. Goldman Sachs Group Inc. now owns 206,493 shares of the industrial products company's stock valued at $9,755,000 after acquiring an additional 92,286 shares during the last quarter. Empowered Funds LLC increased its stake in shares of Sonoco Products by 14.1% during the first quarter. Empowered Funds LLC now owns 11,058 shares of the industrial products company's stock valued at $522,000 after purchasing an additional 1,364 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Sonoco Products by 87.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 545,179 shares of the industrial products company's stock valued at $25,754,000 after acquiring an additional 255,055 shares in the last quarter. Institutional investors and hedge funds own 77.69% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Wall Street Zen upgraded Sonoco Products from a "sell" rating to a "hold" rating in a research report on Wednesday, May 7th. UBS Group raised their price target on Sonoco Products from $48.00 to $50.00 and gave the stock a "neutral" rating in a research note on Thursday. Jefferies Financial Group initiated coverage on Sonoco Products in a research note on Tuesday, April 22nd. They issued a "buy" rating and a $62.00 price objective on the stock. Raymond James Financial lifted their price objective on Sonoco Products from $50.00 to $55.00 and gave the company an "outperform" rating in a research note on Tuesday, July 15th. Finally, Truist Financial lifted their price objective on Sonoco Products from $53.00 to $58.00 and gave the stock a "buy" rating in a report on Friday. Three research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, Sonoco Products presently has an average rating of "Moderate Buy" and an average target price of $57.63.

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.