Sonoco Reaffirms FY Guidance as Q2 Earnings and Revenue Exceed Estimates

HARTSVILLE, S.C. – Sonoco Products Company, a prominent global packaging firm focused on sustainability, has released its financial results for the second quarter ending June 30, 2024.

The company reported an adjusted earnings per share (EPS) of $1.28, which exceeded analyst expectations by $0.04. However, revenue fell short of estimates, totaling $1.62 billion, compared to a consensus of $1.69 billion, and down from $1.705 billion the previous year.

Sonoco’s GAAP net income attributable to the company was $91 million, a decrease from $115 million in the previous year. Additionally, GAAP diluted earnings per share declined to $0.92 from $1.16 year-over-year. Despite the revenue miss, the company demonstrated solid productivity gains, achieving $51 million in the quarter and $102 million for the first half of 2024.

Howard Coker, Sonoco’s President and CEO, praised the sequential growth in adjusted EBITDA and EPS. He credited the robust second-quarter performance to productivity enhancements and organic volume growth in the Industrial segment. Coker also highlighted the company’s disciplined capital deployment strategy, which encompasses investments in capital and innovation projects, as well as returning capital to shareholders.

Looking forward, Sonoco has provided guidance for the third quarter of 2024, anticipating an adjusted EPS range of $1.40 to $1.60, which aligns closely with the analyst consensus of $1.46. For the entire year, the company expects adjusted EPS to fall between $5.00 and $5.30, in comparison to the consensus estimate of $5.08.

Sonoco’s reaffirmed full-year guidance for adjusted EBITDA and operating cash flow, excluding the impact of the pending Eviosys acquisition and potential divestitures, demonstrates management’s confidence in achieving its financial targets for the year.