Sonoco Products (NYSE:SON) Shares Gap Down on Disappointing Earnings

Key Points

• Sonoco missed Q results — $1.20 EPS vs. $1.57 expected and revenue of $1.68B vs. $1.88B consensus — prompting a sharp gap down from $56.79 to an open of $52.80 and trading near $48.95 on heavy volume.
• The company raised its quarterly dividend to $0.54 (annualized $2.16, about a 4.4% yield) and set FY2026 guidance of 5.80–6.20 EPS, while analysts’ consensus remains a "Hold" with a $61.78 average price target.

Sonoco Products Company (NYSE:SON - Get Free Report) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $56.79, but opened at $52.80. Sonoco Products shares last traded at $48.9510, with a volume of 732,979 shares trading hands.

The industrial products company reported $1.20 earnings per share for the quarter, missing the consensus estimate of $1.57 by ($0.37). The business had revenue of $1.68 billion during the quarter, compared to the consensus estimate of $1.88 billion. Sonoco Products had a return on equity of 18.52% and a net margin of 13.34%.Sonoco Products's revenue for the quarter was down 1.9% on a year-over-year basis. During the same quarter last year, the company earned $1.38 EPS. Sonoco Products has set its FY 2026 guidance at 5.800-6.200 EPS.

Sonoco Products Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be paid a dividend of $0.54 per share. The ex-dividend date is Friday, May 8th. This represents a $2.16 annualized dividend and a dividend yield of 4.4%. This is a boost from Sonoco Products's previous quarterly dividend of $0.53. Sonoco Products's dividend payout ratio is 21.05%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Truist Financial decreased their target price on Sonoco Products from $69.00 to $68.00 and set a "buy" rating on the stock in a report on Wednesday, April 15th. Bank of America raised Sonoco Products from a "neutral" rating to a "buy" rating and boosted their price target for the company from $56.00 to $60.00 in a report on Monday, January 5th. Zacks Research raised Sonoco Products from a "strong sell" rating to a "hold" rating in a research note on Tuesday, January 6th. Argus raised Sonoco Products to a "hold" rating in a research report on Monday. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Sonoco Products in a research note on Wednesday, January 21st. Five analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Sonoco Products has an average rating of "Hold" and a consensus price target of $61.78.

Insiders Place Their Bets

In other Sonoco Products news, insider Ernest D. Haynes III sold 1,581 shares of the stock in a transaction on Friday, February 27th. The stock was sold at an average price of $56.39, for a total value of $89,152.59. Following the completion of the sale, the insider owned 9,377 shares in the company, valued at approximately $528,769.03. This represents a 14.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.98% of the company's stock.

Hedge Funds Weigh In On Sonoco Products

A number of hedge funds have recently made changes to their positions in SON. Venturi Wealth Management LLC bought a new stake in Sonoco Products during the 1st quarter valued at approximately $220,000. Poehling Capital Management INC. bought a new position in Sonoco Products in the 1st quarter worth approximately $440,000. Foster & Motley Inc. purchased a new stake in Sonoco Products during the 1st quarter valued at approximately $285,000. Louisiana State Employees Retirement System purchased a new stake in Sonoco Products during the 1st quarter valued at approximately $1,547,000. Finally, Kestra Private Wealth Services LLC raised its position in shares of Sonoco Products by 1.0% during the first quarter. Kestra Private Wealth Services LLC now owns 37,203 shares of the industrial products company's stock valued at $2,012,000 after buying an additional 382 shares during the last quarter. Institutional investors own 77.69% of the company's stock.

Sonoco Products Price Performance

The company has a quick ratio of 0.60, a current ratio of 1.05 and a debt-to-equity ratio of 1.04. The firm's fifty day moving average price is $54.43 and its 200 day moving average price is $47.36. The stock has a market cap of $4.84 billion, a PE ratio of 4.89, a P/E/G ratio of 1.13 and a beta of 0.50.

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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