Solid average income phase stability: Sonoco Products Company (NYSE: SON)

On 17 March 2020, Sonoco Products Company (NYSE: SON) spotted trading -29.06% off 52-week high price. On the other end, the stock has been noted 17.43% away from the low price over the last 52-weeks. The stock changed 14.72% to recent value of $47.23. The stock transacted 1030051 shares during most recent day however it has an average volume of 542.98K shares.

Sonoco Products Company,SON

Sonoco (SON) recently stated financial results for its fourth quarter and full year, both ending December 31, 2019.

Fourth-Quarter and Full-Year Highlights

Fourth-quarter 2019 GAAP earnings per diluted share were $0.44, contrast with $0.77 in 2018.

2019 fourth-quarter results include net after-tax charges of $0.31 per diluted share, primarily related to asset impairments, restructuring actions, non-operating pension costs and acquisition-related expenses. Prior-year results included net after-tax charges of $0.07 per diluted share mostly Because of restructuring expenses, acquisition costs and other one-time items which were partially offset by a gain related to the impact of the 2017 U.S. Tax Cuts and Jobs Act.

Full-year 2019 GAAP earnings per diluted share were $2.88, contrast to $3.10 in 2018. Sonoco before provided fourth-quarter and full-year 2019 GAAP earnings guidance of $0.43 to $0.45 and $2.87 to $2.89 per diluted share, respectively.

Base net income attributable to Sonoco (base earnings) for the quarter was $0.75 per diluted share, contrast with $0.84 in 2018. Full-year 2019 base earnings per diluted share were $3.53, contrast to $3.37 in 2018. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.)  Sonoco before provided fourth-quarter and full-year 2019 base earnings guidance of $0.74 to $0.76 and $3.52 to $3.54 per diluted share, respectively.

Fourth-quarter 2019 net sales were $1.31B, down from $1.36B in 2018.  Full-year 2019 net sales were $5.37B, contrast to $5.39B in 2018.

Full-year cash flow from operations was $425.9M for 2019, contrast with $589.9M in 2018. Free cash flow was $74.3M, contrast with $260.2M in 2018. 2019 cash flow results included a voluntary contribution into the Company’s U.S. defined benefit pension plan of about$165M, after taxes. (See free cash flow definition and reconciliation to cash flow from operations later in this release.)

On December 31, 2019, Sonoco purchased Thermoformed Engineered Quality LLC, and Plastique Holdings, LTD, (together TEQ), a global manufacturer of thermoformed packaging serving healthcare, medical device and consumer markets, from ESCO Technologies, Inc. (ESE) for $187M in cash.

Fourth-Quarter Review
Net sales for the fourth quarter were $1.3B, a decline of $46.8M, or 3.4 percent, from last year’s quarter. Sales declined Because of lower volumes in each section together with lower selling prices in our Paper and Industrial Converted Products Section and the negative impact of foreign exchange, which was only partially offset by sales added by the Corenso acquisition.

GAAP net income attributable to Sonoco in the fourth quarter was $44.9M, or $0.44 per diluted share, a decrease of $32.8M, contrast with $77.7M, or $0.77 per diluted share, in 2018. Base earnings in the fourth quarter were $76.4M, or $0.75 per diluted share, a decrease of $8.9M, contrast with $85.3M, or $0.84 per diluted share, in 2018. Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring-related items, asset impairment charges, acquisition expenses, non-operating pension costs, certain income tax-related events and other items, if any, the exclusion of which the Company believes improves comparability and analysis of the ongoing operating performance of the business. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.)

Fourth-quarter GAAP earnings include after-tax charges of $31.5M, or $0.31 per diluted share, due primarily to asset impairments, restructuring actions, non-operating pension costs and acquisition expenses. In the fourth quarter of 2018, GAAP earnings included charges totaling $7.6M or $0.07 per diluted share, after tax, related to restructuring activities, acquisitions and other items which were partially offset by non-base gains related to the 2017 U.S. Tax Cuts and Jobs Act.

Gross profits were $246.9M in the fourth quarter, a decline of $7.4M or 2.9 percent, contrast with $254.3M in the same period in 2018. Gross profit as a percentage of sales was essentially flat at 18.9 percent. Fourth-quarter GAAP selling, general and administrative expenses reduced $13.1M from the previous year to $135.8M. This decrease was largely driven by lower acquisition related costs in 2019 as well as cost controls implemented this year.

 Its earnings per share (EPS) expected to touch remained -8.20% for this year while earning per share for the next 5-years is expected to reach at 2.84%. SON has a gross margin of 19.70% and an operating margin of 8.70% while its profit margin remained 5.40% for the last 12 months.   According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -7.10% from the mean of 20 days, -14.79% from mean of 50 days SMA and performed -19.87% from mean of 200 days price. Company’s performance for the week was -6.90%, -16.85% for month and YTD performance remained -23.48%.

 

Gregory Amaral

Gregory Amaral–  Business Stories I am Gregory Amaral with more than 10 years of experience in the Stock market industry, I am energetic about Finance and Business news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of Observednews.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Business News category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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