ARD - Free Research Report as Sonoco's Sales Jumped 11.2% and Adjusted EPS Surged 25%
Stock Monitor: Ardagh Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 4, 2018 / If you want access to our free earnings report on Sonoco Products Co. (NYSE: SON) ("Sonoco") all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SON. The Company reported its first quarter fiscal 2018 operating and financial results on April 19, 2018. The Company, which is one of the largest diversified global packaging Companies, delivered record gross profit and beat earnings expectations. Additionally, the Company provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1000 Free Research Reports by joining our site below:
www.active-investors.com/registration-sg
Active-Investors.com is currently working on the research report for Ardagh Group S.A. (NYSE: ARD), which also belongs to the Consumer Goods sector as the Company Sonoco Products. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/?symbol=ARD
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sonoco Products most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=SON
Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Sonoco's net sales were $1.30 billion, up 11.2% from $1.17 billion in Q1 2017. The improvement reflected an increase in sales, added by acquisitions; a positive impact of foreign exchange; higher selling prices implemented to recover rising freight, wages, and operating inflation; and a modest volume growth. The Company's revenue numbers were in-line with analysts' estimates of $1.30 billion.
During Q1 2018, Sonoco's gross profit was a record $250.6 million, reflecting an increase of 12.4% compared to $223.0 million in Q1 2017. The Company's gross profit as a percentage of sales increased to 19.2% compared to 19.0% in the prior year's same quarter. The gross profit percentage increase was primarily due to manufacturing and procurement productivity, mostly offsetting higher raw material and other operating costs.
For Q1 2018, Sonoco's GAAP net income attributable to common shareholders was $74.1 million, or $0.73 per diluted share, compared to $53.7 million, or $0.53 per diluted share, in Q1 2017. The Company's reported quarter earnings included after-tax charges of $2.4 million, or $0.02 per diluted share, related to restructuring and acquisition-related expenses, and mostly offset by the effect of the change in the US corporate tax rate on deferred tax adjustments, and a gain from a casualty loss insurance settlement totaling $1.8 million, or $0.02 per diluted share.
Sonoco's non-GAAP base earnings were $74.6 million, or $0.74 per diluted share, in the reported quarter versus $59.9 million, or $0.59 per diluted share, in the prior year's comparable quarter. The Company's earnings beat Wall Street's estimates of $0.72 per share.
Segment Results
During Q1 2018, Sonoco's Consumer Packaging segment's sales grew 18.2% to $570 million compared to $482 million in Q1 2017, due to sales added from acquisitions; a positive translation impact of changes in foreign exchange rates; and higher selling prices. The segment's operating profit was $61.1 million in the reported quarter, up 2.7% compared to $59.5 million in the prior year's corresponding quarter, driven by productivity improvements; positive price/cost relationship; and the benefit of acquisitions.
For Q1 2018, Sonoco's Display and Packaging segment's sales surged 24.4% to $143 million compared to $115 million in Q1 2017, primarily due to volume growth from a new pack center near Atlanta, and the positive impact of foreign exchange. The segment reported an operating profit of $1.7 million in the reported quarter compared to $3.2 million in the prior year's same quarter, down largely due to inefficiencies and higher operating costs associated with the ramp-up of production at the new pack center.
Sonoco's Paper and Industrial Converted Products segment's sales gained 4.1% to $461 million in Q1 2018, up from $443 million in Q1 2017, primarily attributed to the positive impact of foreign exchange and higher selling prices. The segment's operating profit surged 48.2% to $39.8 million in the reported quarter versus $26.9 million in the year-earlier comparable quarter, driven by a positive price/cost relationship across most of the segment.
During Q1 2018, Sonoco's Protective Solutions segment's sales were $131 million, down slightly from $133 million in Q1 2017, as the positive impact of foreign exchange and higher selling prices was offset by a lower volume/mix. The segment's operating profit was $10.7 million in the reported quarter, which remained essentially flat on a y-o-y basis.
Cash Matters
For Q1 2018, Sonoco's cash generated from operations was $119.8 million compared to $67.4 million in Q1 2017, an increase of $52.4 million, driven by an improvement in GAAP net income along with a decrease in cash contributions to pension and post-retirement plans. Sonoco's free cash flow was $44.9 million in Q1 2018 compared to negative $18.4 million in Q1 2017.
As of April 01, 2018, Sonoco's total debt was approximately $1.46 billion compared to $1.45 billion as of December 31, 2017. At the end of Q1 2018, the Company had a total-debt-to-total-capital ratio of 44.9% compared to 45.6% at December 31, 2017. Sonoco's cash and cash equivalents balance was $305.3 million as of April 01, 2018, compared to $254.9 million as of December 31, 2017.
Outlook
For the second quarter of the fiscal year 2018, Sonoco is forecasting base diluted earnings per share (EPS) to be in the range of $0.83 to $0.89.
For the full fiscal year 2018, Sonoco is projecting base EPS to be in the band of $3.22 to $3.32, which is an increase from the previous estimates of $3.16 to $3.26. The Company's operating cash flow and free cash flow guidance remain unchanged for 2018 and are expected to be in the ranges of $560 million to $580 million, and $180 million to $200 million, respectively.
Stock Performance Snapshot
May 3, 2018 - At Thursday's closing bell, Sonoco Products' stock marginally dropped 0.10%, ending the trading session at $51.22.
Volume traded for the day: 567.47 thousand shares.
Stock performance in the last month — up 5.70%
After yesterday's close, Sonoco Products' market cap was at $5.11 billion.
Price to Earnings (P/E) ratio was at 35.79.
The stock has a dividend yield of 3.20%.
The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry.
Active-Investors :
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors