A Preview Of Sonoco Prods's Earnings

Sonoco Prods SON is set to give its latest quarterly earnings report on Tuesday, 2025-04-29. Here's what investors need to know before the announcement.

Analysts estimate that Sonoco Prods will report an earnings per share (EPS) of $1.42.

Anticipation surrounds Sonoco Prods's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

In the previous earnings release, the company missed EPS by $0.20, leading to a 3.66% drop in the share price the following trading session.

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

Sonoco Prods Share Price Analysis

Shares of Sonoco Prods were trading at $46.19 as of April 25. Over the last 52-week period, shares are down 17.82%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Insights Shared by Analysts 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 5 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $54.8, the consensus suggests a potential 18.64% upside.

Comparing Ratings Among Industry Peers

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

• Analysts currently favor an Buy trajectory for Sealed Air, with an average 1-year price target of $36.67, suggesting a potential 20.61% downside.
• Analysts currently favor an Neutral trajectory for Graphic Packaging Holding, with an average 1-year price target of $30.0, suggesting a potential 35.05% downside.
• Analysts currently favor an Outperform trajectory for Avery Dennison, with an average 1-year price target of $202.54, suggesting a potential 338.49% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Sealed Air, Graphic Packaging Holding and Avery Dennison, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

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

Unveiling the Story Behind Sonoco Prods

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.

Unraveling the Financial Story of Sonoco Prods

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Sonoco Prods displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 24.51%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Sonoco Prods's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -11.66%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -1.81%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.4%, the company showcases effective utilization of assets.

Debt Management: With a high debt-to-equity ratio of 3.21, Sonoco Prods faces challenges in effectively managing its debt levels, indicating potential financial strain.

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.