SON Earnings Prediction
The chart below shows how SON performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SON sees a +0.13% change in stock price 10 days leading up to the earnings, and a -0.67% change 10 days following the report. On the earnings day itself, the stock moves by -0.16%. This data can give you a slight idea of what to expect for the next quarter's release.
SON Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.68B
-2.02%
3.23%
Gross Margin
21.41%
0.52%
-2.73%
Operating Margin
11.20%
-1.32%
2.47%
Net Margin
3.06%
-60.05%
-45.36%
EPS
0.51
-61.36%
-44.57%
No Data Available
SON Earnings Analysis
Sonoco Products Company Corporation (SON.N) Earnings Conference Call
Positive
Q3 2024 Financial Highlights: 1. Strong Financial Performance: Sonoco reported Q3 2024 sales of $1.68 billion, with adjusted EBITDA of $281 million, marking the highest adjusted EBITDA since Q3 2022 and an adjusted EBITDA margin of 16.8%.
Earnings Per Share Surge: 2. Increased Adjusted Earnings Per Share: The company achieved adjusted earnings per share of $1.49, driven by positive productivity and volume mix, exceeding consensus analyst estimates.
Productivity Improvement Achievements: 3. Significant Productivity Gains: Sonoco realized $39 million in productivity improvements during the quarter, contributing to a year-over-year productivity increase for the seventh consecutive quarter.
Operating Cash Flow Strength: 4. Strong Operating Cash Flow: The company generated solid operating cash flow of $162 million in Q3 2024, supporting its capital investment initiatives and strategic growth plans.
Acquisition Strategy Impact: 5. Successful Acquisition Strategy: The planned acquisition of Eviosys is expected to be immediately accretive to earnings and cash flow, enhancing Sonoco's position in the metal packaging market and driving future growth opportunities.
Negative
Sales Decline Analysis: Sales decreased 2% to $1.68 billion, impacted by negative price and a $92 million loss from exiting nonstrategic positions, indicating a decline in revenue generation.
Adjusted EBITDA Analysis: Adjusted EBITDA was $281 million, with a margin of 16.8%, but the negative price/cost impact of $37 million reflects ongoing cost pressures.
Flat Consumer Sales Performance: Consumer sales were flat at $984 million, with a 2% decrease in price due to index-based resets, suggesting challenges in maintaining pricing power.
Limited Industrial Sales Growth: Industrial sales increased only 1% to $585 million, with a $20 million reduction from recycling reclassification, indicating limited growth in this segment.
Strategic Review Implications: The strategic review of the Thermoformed & Flexible Packaging segment suggests potential divestiture, which may lead to further uncertainty and operational disruption.
SON FAQs
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SON Earning Call Sentiment
Sonoco Products Company (SON) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SON.N
1.28%Positive
The earnings call summary and Q&A indicate a positive outlook. Despite a slight decrease in sales, productivity improvements and a strong adjusted EBITDA margin are notable. The Eviosys acquisition is seen as a strategic move with expected revenue and EBITDA growth, though it raises debt concerns. The commitment to dividends and productivity savings adds confidence. While some analyst questions were not fully addressed, the overall sentiment is positive, with optimistic guidance and strategic initiatives likely to boost the stock price in the short term.
