The 10-second takeaway
For the quarter ended April 1 (Q1), Sonoco Products beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, net margins contracted.
Sonoco Products booked revenue of $1.21 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $1.18 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $1.12 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 $0.52. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share on the same basis. GAAP EPS of $0.42 for Q1 were 25% lower than the prior-year quarter's $0.56 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 17.9%, 50 basis points better than the prior-year quarter. Operating margin was 7.8%, 40 basis points worse than the prior-year quarter. Net margin was 3.6%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.21 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $2.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 115 members out of 124 rating the stock outperform, and nine members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $35.75.
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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.