Markets
SON

Sonoco Products Posts Lower Profit In Q2; Issues Q3 Earnings Outlook - Quick Facts

(RTTNews) - Sonoco Products Co. (SON) reported a decline in Q2 profit, reflecting lower sales impacted by negative volume/mix, a significant negative price/cost relationship due to rising recovered paper costs that primarily impacted its Paper and Industrial Converted Product segment along with the negative impact of foreign exchange translation, increased interest expense and a higher effective tax rate.

The company's Q2 net income was $55.2 million or $0.55 per share compared to $81.2 million or $0.80 per share last year.

Base earnings totaled $80.1 million or $0.79 per share compared to $96.5 million or $0.95 per share reported a year ago.

Net sales for the quarter amounted to $1.25 billion, lower than the previous year's sales of $1.36 billion.

Analysts polled by Thomson Reuters expected earnings of $0.78 per share on revenue of $1.32 billion for the quarter. Analysts' estimate typically exclude certain special items.

Looking ahead, the company expects Q3 base earnings to be in the range of $0.73 - $0.83 per share, versus the prior year's base earnings of $0.97 per share. Eight Wall Street analysts have a consensus earnings estimate of $0.81 per share for the quarter.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SON

Latest Markets Videos

RTTNews

Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges.

Learn More