Sonoco Products (SON) has a market cap of $5.0 billion. It rose 0.06% to close at $50.60 per share on October 18, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.4%, -3.2%, and 26.7%, respectively, on the same day. SON is trading 1.9% below its 20-day moving average, 2.0% below its 50-day moving average, and 7.7% above its 200-day moving average.
Related ETF and peers
The PowerShares S&P Mid-Cap Low Volatility Portfolio ETF (XMLV) invests 1.3% of its holdings in Sonoco. The ETF tracks a volatility-weighted index of the 80 least volatile S&P Mid-Cap 400 companies. The YTD price movement of XMLV was 13.0% on October 18.
The market caps of Sonoco Products’ competitors are as follows:
Sonoco Products declares dividend
Sonoco Products has declared a regular quarterly dividend of $0.37 per share on its common stock. The dividend is payable on December 9, 2016, to shareholders of record as of November 11, 2016.
Performance in 2Q16
Sonoco Products reported 2Q16 net sales of ~$1.2 billion, a fall of 3.4% from its net sales of ~$1.3 billion in 2Q15. Sales from its Consumer Packaging, Display & Packaging, and Paper & Industrial Converted Products segments fell 3.8%, 7.6%, and 3.5%, respectively.
Sales from its Protective Solutions segment rose 2.8% between 2Q15 and 2Q16. The company’s gross profit margin rose 4.3%, and its income before interest and tax fell 7.0%. Its net income and EPS (earnings per share) fell to $56.3 million and $0.55, respectively, in 2Q16, compared with $64.4 million and $0.63, respectively, in 2Q15.
Sonoco’s cash and cash equivalents fell 41.0% and its inventories rose 3.1% between 4Q15 and 2Q16. Its current ratio rose to 1.5x and its long-term debt-to-equity ratio fell to 0.65x in 2Q16, compared with 1.4x and 0.7x, respectively, in 4Q15. It reported free cash flow of $31.9 million in 2Q16, a fall of 0.93% from 2Q15.
Sonoco Products has projected EPS of $0.65–$0.70 for 3Q16. The company made the following projections for 2016:
- EPS of $2.68–$2.74
- effective tax rate of 31.5%
- free cash flow of ~$140 million, reflecting an operating cash flow of $490 million
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