Sonoco Products Beats on Both Top and Bottom Lines
Sonoco Products (NYS: SON) reported earnings on April 19. Here are the numbers you need to know.
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.
Can your retirement portfolio provide you with enough income to last? You'll need more than Sonoco Products. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Sonoco Products to My Watchlist.
At the time this article was published 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 ofMotley 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.