What to Expect from Sonoco Prods's Earnings

Sonoco Prods SON is preparing to release its quarterly earnings on Thursday, 2024-10-31. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Sonoco Prods to report an earnings per share (EPS) of $1.45.

Investors in Sonoco Prods are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.03, leading to a 2.32% drop in the share price the following trading session.

Here's a look at Sonoco Prods's past performance and the resulting price change:

Analyst Insights on Sonoco Prods

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Sonoco Prods.

Sonoco Prods has received a total of 3 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $56.33, the consensus suggests a potential 7.52% upside.

Comparing Ratings with Competitors

In this comparison, we explore the analyst ratings and average 1-year price targets of Sealed Air, Pactiv Evergreen and Graphic Packaging Holding, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Sealed Air, with an average 1-year price target of $39.0, indicating a potential 25.56% downside.
• Analysts currently favor an Buy trajectory for Pactiv Evergreen, with an average 1-year price target of $13.33, suggesting a potential 74.56% downside.
• As per analysts' assessments, Graphic Packaging Holding is favoring an Outperform trajectory, with an average 1-year price target of $32.75, suggesting a potential 37.49% downside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Sealed Air, Pactiv Evergreen and Graphic Packaging Holding are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Sonoco Prods is positioned at the bottom for Revenue Growth among its peers. It ranks at the bottom for Gross Profit. Sonoco Prods is at the bottom for Return on Equity.

Get to Know Sonoco Prods Better

Over its 100-year-plus history, Sonoco Products has steadily assembled a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid plastics, reels and spools, pallets, and composite cans. The company serves a variety of consumer and industrial end markets throughout North America. Sonoco has raised its dividend each year for more than 40 years.

Sonoco Prods: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Sonoco Prods's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -4.8%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Sonoco Prods's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 5.59%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Sonoco Prods's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.74%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Sonoco Prods's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.27%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.35.

To track all earnings releases for Sonoco Prods visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.