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Sonoco (SON) to Report Q1 Earnings: What's in the Cards?
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Sonoco Products Company (SON - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.73 per share, suggesting growth of 92.2% from the year-ago quarter’s levels. The same for revenues is pegged at $1.77 billion, indicating a year-over-year improvement of 30.8%.
The Zacks Consensus Estimate for quarterly earnings has moved up 35% in the past 30 days.
A Sneak Peek at Q4
Sonoco’s fourth-quarter earnings and revenues beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of around 1.7%, on average.
Our proven model does not conclusively predict an earnings beat for Sonoco this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Sonoco has an Earnings ESP of 0.00%.
Sonoco recently raised its first-quarter 2022 earnings guidance between $1.70 and $1.80 for, up from its previous guidance of $1.25-$1.35. The updated guidance indicates year-over-year growth of 75% at the mid-point. In first-quarter 2021, the company reported adjusted earnings per share of $1.00.
A strong recovery in price and cost across most of its businesses is expected to have delivered improved operating results in the first quarter. The Ball Metalpack acquisition and stellar demand in the Consumer Packaging segment and All Other groups of businesses (protective, healthcare, retail and industrial plastics) are expected to have driven bottom-line performance in the quarter under review.
Sonoco’s Consumer Packaging segment is witnessing normalization of demand from the heightened pandemic-induced at-home eating trends in the first quarter. The segment’s COVID-impacted markets, such as confectionery, food service and construction products, are likely to have benefited from solid demand recovery. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $885 million, suggesting year-over-year growth of 52%. The Zacks Consensus Estimate for the segment’s operating income is pegged at $130 million, up 71% from the prior-year quarter’s levels.
The company’s industrial-served markets will likely reflect benefits from continued strong demand for global tubes, cores and cones in the March-end quarter. The Zacks Consensus Estimate for the Industrial Paper Packaging segment’s first-quarter revenues is pinned at $703 million, reflecting year-over-year growth of 24%. The Zacks Consensus Estimate for the segment’s operating profit is pinned at $86 million, up 72% from the year-ago quarter’s levels.
The Zacks Consensus Estimate for All Other segment is pegged at $233 million. The Consensus Estimate for the operating profit is pegged at $22.50 million for the first quarter. Sonoco’s ThermoSafe cold chain packaging business will continue to benefit from strong demand for temperature-assured shippers for transporting COVID vaccines. The businesses that serve the automotive and appliance markets are expected to continue gaining from the demand rebound. The company's plastics business, which serves the healthcare industry, will gain from improved demand for elective surgeries.
Sonoco’s focus on optimizing businesses through productivity improvement, standardization and cost control is likely to have aided margin in the January-March quarter.
While the above-mentioned factors are likely to have driven the company’s performance in the first quarter, foreign currency translation, divestitures, non-recurring COVID-related incentives and increased SG&A expenses might have negated some of these benefits. Inflationary cost pressure from higher raw material, freight and energy is likely to get reflected in the company’s first-quarter results.
Price Performance
In the past six months, shares of Sonoco have gained 4.3% compared with the industry’s growth of 3.3%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you might consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
MSC Industrial Direct Co., Inc. (MSM - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings has moved up 4% in the past 30 days to $1.72 per share, suggesting year-over-year growth of 21.1%.
The Zacks Consensus Estimate for MSC Industrial’s quarterly revenues is pegged at $954 million, which indicates an increase of 10.1% from the prior-year quarter’s levels.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +2.84% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings is currently pegged at $6.68 per share, suggesting 17.6% growth from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $13.5 billion, highlighting year-over-year growth of 22.5%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average. It has a long-term earnings growth of 13.5%.
Illinois Tool Works Inc. (ITW - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings have been stable in the past 30 days and is currently pegged at $2.07 per share. The projection indicates a 1.9% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Illinois Tool’s quarterly revenues is pegged at $3.7 billion, which indicates a year-over-year improvement of 6.3%. ITW has a trailing four-quarter earnings surprise of 3.7%, on average.
Image: Bigstock
Sonoco (SON) to Report Q1 Earnings: What's in the Cards?
Sonoco Products Company (SON - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.73 per share, suggesting growth of 92.2% from the year-ago quarter’s levels. The same for revenues is pegged at $1.77 billion, indicating a year-over-year improvement of 30.8%.
The Zacks Consensus Estimate for quarterly earnings has moved up 35% in the past 30 days.
A Sneak Peek at Q4
Sonoco’s fourth-quarter earnings and revenues beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of around 1.7%, on average.
Sonoco Products Company Price and EPS Surprise
Sonoco Products Company price-eps-surprise | Sonoco Products Company Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sonoco this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Sonoco has an Earnings ESP of 0.00%.
Zacks Rank: Sonoco currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note
Sonoco recently raised its first-quarter 2022 earnings guidance between $1.70 and $1.80 for, up from its previous guidance of $1.25-$1.35. The updated guidance indicates year-over-year growth of 75% at the mid-point. In first-quarter 2021, the company reported adjusted earnings per share of $1.00.
A strong recovery in price and cost across most of its businesses is expected to have delivered improved operating results in the first quarter. The Ball Metalpack acquisition and stellar demand in the Consumer Packaging segment and All Other groups of businesses (protective, healthcare, retail and industrial plastics) are expected to have driven bottom-line performance in the quarter under review.
Sonoco’s Consumer Packaging segment is witnessing normalization of demand from the heightened pandemic-induced at-home eating trends in the first quarter. The segment’s COVID-impacted markets, such as confectionery, food service and construction products, are likely to have benefited from solid demand recovery. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $885 million, suggesting year-over-year growth of 52%. The Zacks Consensus Estimate for the segment’s operating income is pegged at $130 million, up 71% from the prior-year quarter’s levels.
The company’s industrial-served markets will likely reflect benefits from continued strong demand for global tubes, cores and cones in the March-end quarter. The Zacks Consensus Estimate for the Industrial Paper Packaging segment’s first-quarter revenues is pinned at $703 million, reflecting year-over-year growth of 24%. The Zacks Consensus Estimate for the segment’s operating profit is pinned at $86 million, up 72% from the year-ago quarter’s levels.
The Zacks Consensus Estimate for All Other segment is pegged at $233 million. The Consensus Estimate for the operating profit is pegged at $22.50 million for the first quarter. Sonoco’s ThermoSafe cold chain packaging business will continue to benefit from strong demand for temperature-assured shippers for transporting COVID vaccines. The businesses that serve the automotive and appliance markets are expected to continue gaining from the demand rebound. The company's plastics business, which serves the healthcare industry, will gain from improved demand for elective surgeries.
Sonoco’s focus on optimizing businesses through productivity improvement, standardization and cost control is likely to have aided margin in the January-March quarter.
While the above-mentioned factors are likely to have driven the company’s performance in the first quarter, foreign currency translation, divestitures, non-recurring COVID-related incentives and increased SG&A expenses might have negated some of these benefits. Inflationary cost pressure from higher raw material, freight and energy is likely to get reflected in the company’s first-quarter results.
Price Performance
In the past six months, shares of Sonoco have gained 4.3% compared with the industry’s growth of 3.3%.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you might consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
MSC Industrial Direct Co., Inc. (MSM - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings has moved up 4% in the past 30 days to $1.72 per share, suggesting year-over-year growth of 21.1%.
The Zacks Consensus Estimate for MSC Industrial’s quarterly revenues is pegged at $954 million, which indicates an increase of 10.1% from the prior-year quarter’s levels.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +2.84% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings is currently pegged at $6.68 per share, suggesting 17.6% growth from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $13.5 billion, highlighting year-over-year growth of 22.5%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average. It has a long-term earnings growth of 13.5%.
Illinois Tool Works Inc. (ITW - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings have been stable in the past 30 days and is currently pegged at $2.07 per share. The projection indicates a 1.9% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Illinois Tool’s quarterly revenues is pegged at $3.7 billion, which indicates a year-over-year improvement of 6.3%. ITW has a trailing four-quarter earnings surprise of 3.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.