Sonoco Reports Strong Q4 Earnings with Significant Net Income Recovery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SON?
Source: NASDAQ.COM
- Net Income Recovery: Sonoco reported a net income of $332.2 million in Q4 2024, a significant turnaround from a loss of $43 million in the same quarter of 2023, indicating a strong recovery in profitability.
- Operating Profit Surge: The operating profit for the quarter reached $520.2 million, up over 800% from $56.1 million in Q4 2023, reflecting successful strategies in cost management and market demand.
- Earnings Per Share Improvement: The earnings per share rose to $3.33, a substantial increase from a loss of $0.44 per share in the same period last year, primarily driven by gains from business sales, boosting investor confidence.
- Sales Growth: Fourth-quarter net sales grew to $1.77 billion, a 29.7% increase from $1.36 billion in the prior year, primarily due to acquisition activities, demonstrating the company's proactive approach to expanding market share and revenue.
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Analyst Views on SON
Wall Street analysts forecast SON stock price to fall
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 57.630
Low
47.00
Averages
52.71
High
60.00
Current: 57.630
Low
47.00
Averages
52.71
High
60.00
About SON
Sonoco Products Company is a global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging serving multiple end markets. Its segments include Consumer Packaging and Industrial Paper Packaging. Products within the Consumer Packaging segment consist of rigid packaging (paper, metal, and plastic), primarily serving the consumer staples market focused on food, beverage, household, personal, and pharmaceutical products. Its rigid paper containers are manufactured from 100% recycled paperboard provided primarily from Sonoco global paper operations. These paper products are primarily used in the food and beverage markets. Products within the Industrial Paper Packaging segment consist primarily of goods produced from recycled fiber including paperboard tubes, cores, cones and cans; partitions; paper-based protective materials, and uncoated recycled paperboard for high-end applications such as folding cartons, can board, and laminated structures.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Net Income Recovery: Sonoco reported a net income of $332.2 million in Q4 2024, a significant turnaround from a loss of $43 million in the same quarter of 2023, indicating a strong recovery in profitability.
- Operating Profit Surge: The operating profit for the quarter reached $520.2 million, up over 800% from $56.1 million in Q4 2023, reflecting successful strategies in cost management and market demand.
- Earnings Per Share Improvement: The earnings per share rose to $3.33, a substantial increase from a loss of $0.44 per share in the same period last year, primarily driven by gains from business sales, boosting investor confidence.
- Sales Growth: Fourth-quarter net sales grew to $1.77 billion, a 29.7% increase from $1.36 billion in the prior year, primarily due to acquisition activities, demonstrating the company's proactive approach to expanding market share and revenue.
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- Share Sale Details: Valley Wealth Managers, Inc. disclosed in its February 4, 2026 SEC filing the sale of 479,832 shares of Sonoco Products Company, with an estimated transaction value of $19.9 million, indicating a significant $20.7 million decline in the fund's position due to market fluctuations during the quarter.
- Position Reduction: Following this transaction, Valley Wealth's stake in Sonoco was reduced to just 475 shares, valued at $20,729 at the end of the quarter, suggesting a waning confidence in Sonoco's future performance, which may impact its investment strategy moving forward.
- Market Performance Analysis: As of February 3, 2026, Sonoco's stock was priced at $49.01, reflecting a 7.9% increase over the past year, yet underperforming the S&P 500 by 9 percentage points, indicating sluggish growth that may prompt investors to reassess its investment value.
- Investor Strategy Shift: In conjunction with the sale of Sonoco shares, Valley Wealth increased its investments in the Vanguard Russell 1000 Growth ETF and Apple, reflecting a strategic shift from underperforming traditional sectors to higher-growth tech stocks, aiming to mitigate risk and capitalize on market opportunities through diversification.
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- Stake Reduction: Valley Wealth Managers disclosed in its February 4, 2026 SEC filing that it sold 479,832 shares of Sonoco Products Company, with the transaction valued at $19.9 million, reflecting a cautious outlook on the company's future growth potential.
- Asset Value Decline: The fund's position value dropped by $20.7 million quarter-over-quarter due to both the share sale and stock price fluctuations, indicating poor market performance and impacting investor confidence in Sonoco.
- Industry Context: Despite Sonoco's revenue surge of 42% in 2025, its historical low growth trajectory has led investors to be wary of its future prospects, prompting a shift of funds towards more promising tech stocks.
- Investment Strategy Shift: While reducing its stake in Sonoco, Valley Wealth increased investments in other top positions like the Vanguard Russell 1000 Growth ETF and Apple, indicating a strategy to seek broader growth opportunities in the current bull market.
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- Tech Stocks Decline: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) fell over 2.7% in midday New York trading, marking its 11th decline in the past 15 sessions and pushing year-to-date losses to nearly 25%, reflecting ongoing investor concerns over potential AI-driven market disruptions.
- Nasdaq Underperformance: While broader equity indices were largely flat, the tech-heavy Nasdaq 100 slipped 0.3%, indicating a lack of confidence in the tech sector that may influence future investment decisions.
- Airline Stocks Rally: Airbnb Inc. (NASDAQ:ABNB) added 3.7%, extending last week's post-earnings momentum, while Southwest Airlines Co. (NYSE:LUV) jumped over 6% following analyst upgrades, suggesting a positive outlook for the airline industry's recovery.
- Commodity Market Decline: Following Iran's foreign minister's statement on reaching key principles with the U.S., crude oil fell 1.3% to $62 per barrel, while gold and silver dropped 2.5% and nearly 6%, respectively, indicating market reactions to geopolitical risks.
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- Earnings Outlook: Investor Jay Woods is closely monitoring Walmart's upcoming Q4 earnings report, anticipating a potential pullback that could present an attractive entry point for investors, reflecting a cautious market sentiment towards the retail giant.
- Profit-Taking Advice: Woods suggests that investors should take profits as the stock approaches $134, especially given its parabolic trajectory, indicating sensitivity to short-term fluctuations in stock price.
- Buy-on-Dip Strategy: He believes that a pullback into the $120 range would be an opportune moment to increase positions, a strategy that may attract more investors to Walmart's long-term value proposition.
- Market Dynamics: Woods also notes that the market is testing support levels for the S&P 500 and Dow Jones Industrial Average, while keeping an eye on Nvidia's earnings, which could have significant implications for market sentiment, highlighting the complexity of current market emotions.
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Financial Target: Sonoco Products aims to achieve approximately $1.5 billion in revenue by the end of 2028.
Strategic Goals: The company is focusing on growth and expansion strategies to meet its financial objectives.
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