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The Zacks Consensus Estimate for quarterly earnings is pegged at $1.68 per share, suggesting growth of 100% from the year-ago quarter’s levels. The same for revenues is pegged at $1.87 billion, indicating a year-over-year improvement of 34.9%.
The Zacks Consensus Estimate for quarterly earnings has moved up 31% in the past 30 days.
A Sneak Peek at Q1
Sonoco’s first-quarter earnings beat the Zacks Consensus Estimate. Revenues were in line with the year-ago quarter’s levels. The top and the bottom line increased year over year. The company has a trailing four-quarter earnings surprise of around 1.8%, on average.
Factors to Note
Last month, Sonoco raised its second-quarter 2022 adjusted earnings per share (EPS) guidance between $1.60 and $1.70, up from its previous guidance of $1.20-$1.30. The updated guidance indicates year-over-year growth of 70% at the mid-point. In second-quarter 2021, the company reported an adjusted EPS of 93 cents.
A strong recovery in price and cost across most of its businesses is expected to have delivered improved operating results in the second 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 benefiting from the Metal Packaging acquisition. The segment’s flexible packaging business is gaining from strong demand for confectionery, food service and other food products. Plastic food packaging reflects higher demand in the fresh and prepared food markets. These factors might have contributed to the segment’s performance in the June-end quarter. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $965 million, suggesting year-over-year growth of 61%. The Zacks Consensus Estimate for the segment’s operating income is pegged at $126 million, up 110% 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 June-end quarter. The Zacks Consensus Estimate for the Industrial Paper Packaging segment’s second-quarter revenues is pinned at $696 million, reflecting year-over-year growth of 14%. The Zacks Consensus Estimate for the segment’s operating profit is pinned at $72 million, up 24% from the year-ago quarter’s levels.
The Zacks Consensus Estimate for All Other segment is pegged at $197 million, indicating year on year increase of 12%. The Consensus Estimate for the segment’s operating profit is pegged at $15.50 million for the second quarter, reflecting year-over-year growth of 41%. Sonoco’s ThermoSafe cold chain packaging business will continue to benefit from strong demand for temperature-assured packaging, retail security packaging, industrial plastics, and molded foam components. Its 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 will likely have aided margin in the April-June quarter.
While the above-mentioned factors are likely to have driven the company’s performance in the second 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 second-quarter results.
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%.
In the past six months, shares of Sonoco have lost 0.9% compared with the industry’s fall of 6.5%.
Image Source: Zacks Investment Research
Stocks to Consider
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.
MRC Global Inc. (MRC - Free Report) currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%.
The Zacks Consensus Estimate for MRC Global’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.
Crane Holdings, Co. (CR - Free Report) currently has an Earnings ESP of +6.98% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.78 per share, suggesting a 2.7% decline from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $800 million, highlighting year-over-year growth of 0.5%. Crane Holdings has a trailing four-quarter earnings surprise of 22.2%, on average. It has a long-term earnings growth of 8.9%.
Terex Corporation (TEX - Free Report) currently has an Earnings ESP of +4.40% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings have gone down 1.2% in the past 30 days and is currently pegged at 85 cents per share. The projection indicates a 16.7% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Terex’ quarterly revenues is pegged at $1.08 billion, which indicates a year-over-year improvement of 3.7%. TEX has a trailing four-quarter earnings surprise of 49%, on average.
Image: Bigstock
Factors Setting the Tone for Sonoco's (SON) Q2 Earnings
Sonoco Products Company (SON - Free Report) is scheduled to report second-quarter 2022 results on Jul 21, before the opening bell.
Q2 Estimates
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.68 per share, suggesting growth of 100% from the year-ago quarter’s levels. The same for revenues is pegged at $1.87 billion, indicating a year-over-year improvement of 34.9%.
The Zacks Consensus Estimate for quarterly earnings has moved up 31% in the past 30 days.
A Sneak Peek at Q1
Sonoco’s first-quarter earnings beat the Zacks Consensus Estimate. Revenues were in line with the year-ago quarter’s levels. The top and the bottom line increased year over year. The company has a trailing four-quarter earnings surprise of around 1.8%, on average.
Factors to Note
Last month, Sonoco raised its second-quarter 2022 adjusted earnings per share (EPS) guidance between $1.60 and $1.70, up from its previous guidance of $1.20-$1.30. The updated guidance indicates year-over-year growth of 70% at the mid-point. In second-quarter 2021, the company reported an adjusted EPS of 93 cents.
A strong recovery in price and cost across most of its businesses is expected to have delivered improved operating results in the second 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 benefiting from the Metal Packaging acquisition. The segment’s flexible packaging business is gaining from strong demand for confectionery, food service and other food products. Plastic food packaging reflects higher demand in the fresh and prepared food markets. These factors might have contributed to the segment’s performance in the June-end quarter. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $965 million, suggesting year-over-year growth of 61%. The Zacks Consensus Estimate for the segment’s operating income is pegged at $126 million, up 110% 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 June-end quarter. The Zacks Consensus Estimate for the Industrial Paper Packaging segment’s second-quarter revenues is pinned at $696 million, reflecting year-over-year growth of 14%. The Zacks Consensus Estimate for the segment’s operating profit is pinned at $72 million, up 24% from the year-ago quarter’s levels.
The Zacks Consensus Estimate for All Other segment is pegged at $197 million, indicating year on year increase of 12%. The Consensus Estimate for the segment’s operating profit is pegged at $15.50 million for the second quarter, reflecting year-over-year growth of 41%. Sonoco’s ThermoSafe cold chain packaging business will continue to benefit from strong demand for temperature-assured packaging, retail security packaging, industrial plastics, and molded foam components. Its 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 will likely have aided margin in the April-June quarter.
While the above-mentioned factors are likely to have driven the company’s performance in the second 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 second-quarter results.
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.
Price Performance
In the past six months, shares of Sonoco have lost 0.9% compared with the industry’s fall of 6.5%.
Image Source: Zacks Investment Research
Stocks to Consider
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.
MRC Global Inc. (MRC - Free Report) currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%.
The Zacks Consensus Estimate for MRC Global’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.
Crane Holdings, Co. (CR - Free Report) currently has an Earnings ESP of +6.98% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.78 per share, suggesting a 2.7% decline from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $800 million, highlighting year-over-year growth of 0.5%. Crane Holdings has a trailing four-quarter earnings surprise of 22.2%, on average. It has a long-term earnings growth of 8.9%.
Terex Corporation (TEX - Free Report) currently has an Earnings ESP of +4.40% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings have gone down 1.2% in the past 30 days and is currently pegged at 85 cents per share. The projection indicates a 16.7% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Terex’ quarterly revenues is pegged at $1.08 billion, which indicates a year-over-year improvement of 3.7%. TEX has a trailing four-quarter earnings surprise of 49%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.