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Sonoco (SON) Hikes Price of Paperboard Tubes and Cores
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Sonoco Products Company (SON - Free Report) recently announced a price hike of at least 8% for all paperboard tubes and cores in the U.S. and Canada. The company decided to increase the prices owing to the continuous rise in raw material costs. The price increase will be effective on shipments from Feb 13, 2017.
In Oct 2016, Sonoco had raised the price of all paperboard tubes and cores by 6% to 8%. Sonoco raised prices due to the increase in costs of uncoated recycled paperboard as well as higher energy, labor and other input costs.
An increase in costs can adversely affect Sonoco’s business and financial results, while the ability to pass them on to customers by raising prices will improve productivity. The company also uses derivatives to mitigate some of the effect of raw material and energy cost fluctuations.
Sonoco remains focused on gaining market share by introducing new commercial products. The company raised its full-year guidance despite lackluster global economic conditions. The company now anticipates earnings in the range of $2.70–$2.75 for 2016.
For 2017, Sonoco projects earnings per share in the range of $2.68 to $2.78. This will likely be driven by volume growth, net of higher depreciation associated with growth initiatives. Higher productivity, on the other hand, is projected to offset non-material inflation costs.
Moreover, shares of Sonoco have outperformed the Zacks categorized Containers-Paper/Plastic industry in the past one year. The stock gained 42.8%, more than the industry’s gain of 27.7%, over the same time frame.
Zacks Rank & Key Picks
Sonoco currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector include Altra Industrial Motion Corp. , Apogee Enterprises, Inc. (APOG - Free Report) and Actuant Corporation .
Altra Industrial Motion sports a Zacks Rank #1 (Strong Buy) and has an impressive earnings track record. It has an average positive earnings surprise of 8.06% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apogee Enterprises also boasts a Zacks Rank #1 and has an average earnings surprise of 13.24% for the trailing four quarters.
Actuant Corporation, another Zacks Rank #1 stock, has an average positive earnings surprise of 11.47% for the past four quarters.
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Sonoco (SON) Hikes Price of Paperboard Tubes and Cores
Sonoco Products Company (SON - Free Report) recently announced a price hike of at least 8% for all paperboard tubes and cores in the U.S. and Canada. The company decided to increase the prices owing to the continuous rise in raw material costs. The price increase will be effective on shipments from Feb 13, 2017.
In Oct 2016, Sonoco had raised the price of all paperboard tubes and cores by 6% to 8%. Sonoco raised prices due to the increase in costs of uncoated recycled paperboard as well as higher energy, labor and other input costs.
An increase in costs can adversely affect Sonoco’s business and financial results, while the ability to pass them on to customers by raising prices will improve productivity. The company also uses derivatives to mitigate some of the effect of raw material and energy cost fluctuations.
Sonoco Products Company Price
Sonoco Products Company Price | Sonoco Products Company Quote
Sonoco remains focused on gaining market share by introducing new commercial products. The company raised its full-year guidance despite lackluster global economic conditions. The company now anticipates earnings in the range of $2.70–$2.75 for 2016.
For 2017, Sonoco projects earnings per share in the range of $2.68 to $2.78. This will likely be driven by volume growth, net of higher depreciation associated with growth initiatives. Higher productivity, on the other hand, is projected to offset non-material inflation costs.
Moreover, shares of Sonoco have outperformed the Zacks categorized Containers-Paper/Plastic industry in the past one year. The stock gained 42.8%, more than the industry’s gain of 27.7%, over the same time frame.
Zacks Rank & Key Picks
Sonoco currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector include Altra Industrial Motion Corp. , Apogee Enterprises, Inc. (APOG - Free Report) and Actuant Corporation .
Altra Industrial Motion sports a Zacks Rank #1 (Strong Buy) and has an impressive earnings track record. It has an average positive earnings surprise of 8.06% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apogee Enterprises also boasts a Zacks Rank #1 and has an average earnings surprise of 13.24% for the trailing four quarters.
Actuant Corporation, another Zacks Rank #1 stock, has an average positive earnings surprise of 11.47% for the past four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>