The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sonoco Products met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.
Margins contracted across the board.
Sonoco Products logged revenue of $1.13 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $1.14 billion on the same basis. GAAP reported sales were 0.2% higher than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.46. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share on the same basis. GAAP EPS of $0.29 for Q4 were 12% lower than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.4%, 130 basis points worse than the prior-year quarter. Operating margin was 7.0%, 130 basis points worse than the prior-year quarter. Net margin was 2.6%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $4.81 billion. The average EPS estimate is $2.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 124 rating the stock outperform, and 10 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Sonoco Products a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonoco Products is hold, with an average price target of $35.15.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.