NYSE$SON

Sonoco Products Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth-quarter and full-year 2021 results, with net sales up and base earnings per diluted share at $0.90.

Sonoco reported a 4.6% increase in fourth-quarter net sales to $1.44 billion and GAAP earnings per diluted share of $0.66, compared to a loss of $(0.12) in 2020. Base earnings per diluted share increased to $0.90 from $0.82 in the prior year. The company also raised its 2022 guidance, reflecting the benefit of the Ball Metalpack acquisition.

  • Fourth-quarter net sales increased by 4.6% to $1.44 billion.
  • GAAP earnings per diluted share were $0.66, a significant improvement from the $(0.12) loss in the previous year.
  • Base earnings per diluted share rose to $0.90, compared to $0.82 in 2020.
  • The company completed the acquisition of Ball Metalpack on January 26, 2022, for $1.35 billion.

Headline financials

Total Revenue

$1.44B

Previous: $1.38B+4.3%
EPS (adj)

$0.90

Previous: $0.82+9.8%
Capital Expenditures

$99.4M

Previous: $77.5M+28.4%
Free Cash Flow

-$20.8M

Previous: $349M-106.0%
Net Income

$67.7M

Previous: -$11.3M+699.8%
Operating Income

$105M

Previous: $17.2M+507.9%
Gross Profit

$264M

Previous: $275M-4.1%
Cash & Equivalents

$171M

Previous: $565M-69.7%
Total Assets

$5.07B

Previous: $5.28B-3.9%
Stock-Based Comp

$5.22M

Previous: $4.06M+28.6%

Revenue & EPS history

Sonoco · Revenue · Quarterly

$1.44B

Q4 2021+4.3%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Sonoco · $1.24B total across 2 segments · Q4 2021

  • Industrial Paper Packaging
    $655M+28.7%
  • Consumer Packaging
    $589M-4.4%

Forward guidance

Sonoco expects 2022 base earnings to be in the range of $4.60 to $4.80 per diluted share, with first quarter base earnings per diluted share expected to be between $1.25 to $1.35. Full-year 2022 operating cash flow and free cash flow are expected to be in a range of $690 million to $740 million and $365 million and $415 million, respectively.

Tailwinds

  • Core Consumer and Industrial businesses are well positioned to achieve stronger performance coming out of the pandemic.
  • Efforts to recover higher costs continue to gain traction.
  • The 'invest in ourselves' strategy is expected to continue delivering enhanced growth and improved productivity.
  • The company expects to further simplify its structure, creating a more effective and efficient organization.
  • The addition of Ball Metalpack increases the capability of the core can-making franchise and expands the position in more-defensive consumer markets.

Headwinds

  • An expected negative year-over-year impact from foreign exchange rates.
  • A higher effective tax rate is anticipated.
  • Increased selling, general and administrative expenses are projected.
  • Selling, general and administrative expenses are expected to increase due to the non-recurrence of Covid-related incentives received in 2021.
  • Uncertainty regarding the future performance of the overall economy and 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 Q4 2021

Historical avgQ4 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

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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