NYSE$SON
Sonoco Products Co · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
Sonoco's Q3 2021 performance improved with record net sales and solid customer demand, despite facing supply chain disruptions and inflation.
Sonoco reported record third-quarter net sales of $1.42 billion, an increase of 7.8% compared to the previous year. GAAP earnings per diluted share were $1.12, up from $0.82 in 2020, including a net after-tax benefit of $0.21 per diluted share. Base earnings per diluted share were $0.91, exceeding the company's guidance.
- Net sales reached a record $1.42 billion, up 7.8% year-over-year.
- GAAP earnings per diluted share were $1.12, compared to $0.82 in 2020.
- Base earnings per diluted share were $0.91, exceeding prior guidance.
- The company skillfully navigated supply chain disruptions, raw material shortages, and inflation to meet customer needs.
Headline financials
Revenue & EPS history
Sonoco · Revenue · Quarterly
$1.42B
Revenue by segment
Sonoco · $1.23B total across 2 segments · Q3 2021
- Industrial Paper Packaging$635M+29.5%51.5%
- Consumer Packaging$599M+9.7%48.5%
Forward guidance
Sonoco expects fourth quarter base earnings per diluted share to be in a range of $0.84 to $0.90 and full-year base earnings per diluted share to be in a range of $3.49 to $3.55. Full-year 2021 cash flow from operations is expected to be between $520 million to $550 million and full-year 2021 free cash flow is unchanged from previous guidance at $270 million to $300 million.
Tailwinds
- Demand for products across most businesses remains strong despite supply chain challenges.
- Consumer Packaging segment to continue benefiting from elevated at-home eating trends.
- Demand for global Industrial Paper Packaging products has recovered to pre-pandemic levels.
- Opportunities for new product growth such as fiber protective post business expanding into Poland, Turkey and Mexico.
- Cold-chain packaging business has picked up significant new orders for transporting COVID-19 vaccines.
Headwinds
- Cost inflation expectations have grown and project certain raw materials, energy, freight, packaging and other costs pressures will continue well into 2022.
- Must continue executing inflation-justified pricing actions across each of businesses and will remain focused on controlling costs.
- The divestiture of display and packaging business.
- Six fewer days than in the prior year period.
- Higher year-end 2021 net working capital balances due to a combination of inflation and increased fourth-quarter business activity, as well as the timing and amount of tax payments.
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 Q3 2021
-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
| Quarter | Report date | Reaction (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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