NYSE$SON

Sonoco Products Co · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record sales and net income, driven by strong performance in Consumer Packaging and Industrial Paper Packaging segments.

Sonoco reported strong second-quarter results with record sales of $1.91 billion and base earnings of $1.76 per diluted share, driven by strong performance in the Consumer Packaging and Industrial Paper Packaging segments. The company has increased its full-year base earnings guidance to a range of $6.20 to $6.30 per diluted share.

  • Net sales reached a record $1.91 billion, a 38% increase year-over-year.
  • GAAP net income per diluted share was $1.33, compared to a loss of $(3.34) in the same period last year.
  • Base net income was $1.76 per diluted share, an 89% increase from $0.93 per diluted share in the same period of 2021.
  • The Company has increased its outlook for full-year base earnings to a range of $6.20 to $6.30 per diluted share.

Headline financials

Total Revenue

$1.91B

Previous: $1.38B+38.4%
EPS (adj)

$1.76

Previous: $0.84+109.5%
Dividends Paid

$0.49

No prior period
Adjusted EBITDA

$250M

Previous: $129M+94.5%
Capital Expenditures

-$149M

Previous: -$100M-49.0%
Free Cash Flow

-$17.2M

Previous: -$434M+96.0%
Net Income

$132M

Previous: -$334M+139.4%
Operating Income

$197M

Previous: $135M+46.0%
Gross Profit

$387M

Previous: $263M+47.3%
Cash & Equivalents

$175M

Previous: $264M-33.6%
Total Assets

$6.99B

Previous: $4.99B+40.0%
Stock-Based Comp

$8.38M

Previous: $4.83M+73.5%

Revenue & EPS history

Sonoco · Revenue · Quarterly

$1.91B

Q2 2022+38.4%vs Q2 2021
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Sonoco · $1.72B total across 2 segments · Q2 2022

  • Consumer Packaging
    $990M+65.6%
  • Industrial Paper Packaging
    $727M+19.5%

Forward guidance

The Company expects third-quarter base earnings to be in the range of $1.35 to $1.45 per diluted share. Full-year 2022 base earnings are expected to be between $6.20 to $6.30 per diluted share. Full-year 2022 cash flow from operations and free cash flow guidance remains unchanged at a range of $690 million to $740 million and $365 million to $415 million, respectively.

Tailwinds

  • Consumer Packaging segment will continue to benefit from the integration of Metal Packaging.
  • Sonoco remains committed to our strategic priorities of simplifying our portfolio into fewer, but bigger businesses.
  • Sonoco plans to invest in expanding our core Consumer and Industrial businesses to drive further growth and productivity improvement.
  • Sonoco is executing self-help actions and achieving our sustainability goals.
  • Sonoco remains focused on returning cash to our shareholders with sector-leading, regular dividends.

Headwinds

  • Segment margin percentage should normalize for the remainder of the year.
  • The planned shutdown of the Hartsville corrugated medium machine to complete Project Horizon will occur within the third quarter.
  • The eight-week shutdown is expected to negatively impact third-quarter Industrial Paper Packaging operating profit between $10 million to $15 million.
  • Uncertainty regarding the future performance of the overall economy.
  • Continued effects of the pandemic on global supply chains, and potential changes in raw material prices, other costs, and the Company's effective tax rate.

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 Q2 2022

Historical avgQ2 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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