NYSE$SON

Sonoco Products Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Sonoco reported record first-quarter results in 2022, driven by strong performances in the Consumer Packaging and Industrial Paper Packaging segments and the acquisition of Ball Metalpack, with updated full-year guidance reflecting increased confidence in the company's outlook.

Sonoco reported record first-quarter 2022 results, with net sales reaching $1.77 billion, a 30.9% increase from the previous year. GAAP earnings per diluted share were $1.17, and base earnings per diluted share reached a record $1.85. The company has raised its full-year 2022 guidance, reflecting confidence in continued strong performance.

  • Net sales for the first quarter of 2022 were a record $1.77 billion, up 30.9% from $1.35 billion in the same period last year.
  • GAAP earnings per diluted share increased to $1.17, compared to $0.71 in the first quarter of 2021.
  • Base earnings per diluted share reached a record $1.85, compared to $1.00 in the same period last year.
  • The company has updated its outlook for full-year base earnings to a range of $5.25 to $5.45 per diluted share.

Headline financials

Total Revenue

$1.77B

Previous: $1.35B+30.9%
EPS (adj)

$1.85

Previous: $0.90+105.6%
Adjusted EBITDA

$261M

No prior period
Capital Expenditures

-$67.5M

Previous: -$39.5M-70.7%
Free Cash Flow

$47.8M

Previous: $32.7M+46.0%
Net Income

$115M

Previous: $72.3M+59.5%
Operating Income

$169M

Previous: $120M+40.5%
Gross Profit

$372M

Previous: $278M+33.7%
Cash & Equivalents

$152M

Previous: $588M-74.2%
Total Assets

$6.96B

Previous: $5.28B+31.7%
Stock-Based Comp

$10.7M

Previous: $6.37M+67.7%

Revenue & EPS history

Sonoco · Revenue · Quarterly

$1.77B

Q1 2022+30.9%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Sonoco · $1.57B total across 2 segments · Q1 2022

  • Consumer Packaging
    $868M+49.0%
  • Industrial Paper Packaging
    $699M+23.7%

Forward guidance

The Company expects second quarter base earnings to be in the range of $1.20 to $1.30 per diluted share. Full-year 2022 base earnings are expected to be between $5.25 to $5.45 per diluted share. Full-year 2022 cash flow from operations and free cash flow guidance is unchanged from previous expectations of between $690 million to $740 million and $365 million to $415 million, respectively.

Tailwinds

  • Expectation for continued solid business activity in the second quarter.
  • Confidence about the outlook for strong 2022 performance.
  • Anticipation that the company will continue benefiting from the integration of the Metal Packaging acquisition as we move through this year.
  • The decision to delay the conversion of our Hartsville paper machine from corrugated medium to uncoated recycled paperboard to the third quarter should provide more favorable results in our Industrial Paper Packaging segment in the second quarter.
  • Expectation of modest improvement in our All Other group of businesses as our teams continue driving commercial and operational improvements.

Headwinds

  • Margins in our Consumer Packaging segment will normalize in the second quarter due to the timing of certain one-time price/cost benefits experienced in the first quarter.
  • Supply chain challenges.
  • Higher working capital balances, primarily due to a combination of increased business activity and inflation, to offset net income growth.
  • Uncertainty regarding the future performance of the overall economy.
  • Continued effects of the pandemic on global supply chains.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.5%

Avg return

Earnings day

-1.3%

Avg return

5 days after

-0.7%

Avg return

30 days after

40%

27 / 68 earnings

Positive

+9.7%

Q4 2025

Best reaction

-12.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%-0.6%-2.5%
Q4 2025+9.7%+9.3%+0.3%
Q3 2025-0.2%-3.2%-1.1%
Q1 2025-12.3%-3.8%-2.6%
Q4 2024-3.7%-3.2%-3.0%
Q3 2024-2.5%-4.2%-1.1%
Q2 2024-1.0%-6.8%+6.4%
Q1 2024-1.0%-0.8%+4.7%
Q4 2023+2.8%+0.0%+2.4%
Q3 2023+5.6%+7.5%+7.6%
Q2 2023+1.4%-2.1%-1.1%
Q1 2023-1.7%-0.8%-1.3%
Q4 2022-0.3%+0.4%-6.6%
Q3 2022-9.7%-10.6%-5.4%
Q2 2022+3.9%+5.3%+8.9%
Q1 2022-4.4%-8.5%-14.6%
Q4 2021-2.0%+0.4%-2.7%
Q3 2021-3.3%-3.7%-0.7%
Q2 2021-5.1%-4.1%-1.6%
Q1 2021+0.1%-0.4%+3.6%
Q4 2020-2.8%-3.0%+2.5%
Q3 2020-4.2%-9.2%+3.3%
Q2 2020+2.1%-0.1%+2.9%
Q1 2020+2.4%-4.4%-6.9%
Q4 2019+0.0%-0.1%-17.2%
Q3 2019-0.4%+0.1%+1.1%
Q2 2019-4.5%-5.0%-10.8%
Q1 2019-1.1%+0.6%+3.7%
Q4 2018-3.1%-1.3%-2.7%
Q3 2018+5.3%+1.8%+9.0%
Q2 2018+6.5%+5.2%+4.8%
Q1 2018+3.6%+3.6%+3.8%
Q4 2017-1.8%-3.3%-5.3%
Q3 2017+4.0%+2.4%+0.8%
Q2 2017-6.9%-6.7%-8.8%
Q1 2017+3.2%+2.9%-2.4%
Q4 2016-3.2%-2.1%-2.1%
Q3 2016-0.4%-2.2%+5.2%
Q2 2016+1.0%+1.8%+1.8%
Q1 2016-3.3%
Q4 2015+1.0%
Q3 2015+0.6%
Q2 2015-4.8%
Q1 2015-2.5%
Q4 2014+1.1%
Q3 2014+3.4%
Q2 2014-1.8%
Q1 2014+0.7%
Q4 2013+1.1%
Q3 2013+3.3%
Q2 2013+2.3%
Q1 2013-1.9%
Q4 2012+0.7%
Q3 2012+0.2%
Q2 2012-1.4%
Q1 2012+0.9%
Q4 2011+2.7%
Q3 2011+4.2%
Q2 2011-6.8%
Q1 2010-0.6%
Q1 2011-0.3%
Q4 2008-1.6%
Q4 2010-1.6%
Q3 2009-0.8%
Q3 2010-0.8%
Q4 2009-0.0%
Q2 2009-0.0%
Q2 2010-0.0%

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