Overview
Sustainable packaging firm's Q4 revenue rose 29.7%, slightly beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company completed sale of ThermoSafe business, reducing net debt by $965 mln
Outlook
Sonoco targets full-year adjusted EPS of $5.80 to $6.20
Company expects 2026 adjusted EBITDA of $1.25 bln to $1.35 bln
Sonoco projects 2026 cash flow from operations at $700 mln to $800 mln
Result Drivers
ACQUISITION IMPACT - Revenue growth driven by acquisition of Titan Holdings I B.V., enhancing Metal Packaging EMEA business
THERMOSAFE SALE - Gain from sale of ThermoSafe business unit boosted net income
PRICE AND FX BENEFITS - Higher prices and favorable foreign exchange rates supported revenue growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Beat* | $1.77 bln | $1.76 bln (9 Analysts) |
Q4 Adjusted EPS | Beat | $1.05 | $1 (9 Analysts) |
Q4 EPS | $3.33 | ||
Q4 Net Income | $332 mln | ||
Q4 Operating profit | $520 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy"
Wall Street's median 12-month price target for Sonoco Products Co is $53.00, about 2.6% above its February 13 closing price of $51.67
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nGNX6lVhMr
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)