Sonoco Products (SON) has a market cap of $5.3 billion. It fell 1.7% to close at $52.85 per share on December 2, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.1%, 6.8%, and 33.3%, respectively, on the same day.
SON is trading 0.11% above its 20-day moving average, 2.6% above its 50-day moving average, and 8.3% 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 YTD price movement of XMLV was 16.2% on December 2.
The market caps of Sonoco Products’s competitors are as follows:
Performance of Sonoco Products in 3Q16
Sonoco Products (SON) reported fiscal 3Q16 net sales of $1.21 billion, a fall of 2.7% from the $1.24 billion reported in 3Q15. The company’s gross profit margin and EBIT[1. earnings before interest and tax] margin expanded 100 basis points and 230 basis points, respectively, between 3Q15 and 3Q16.
SON’s net income and EPS (earnings per share) rose to $65.4 million and $0.64, respectively, in 3Q16, compared with $43.9 million and $0.43 in 3Q15.
SON’s cash and cash equivalents and inventories fell 12.7% and 2.4%, respectively, between 4Q15 and 3Q16. It reported free cash flow of $85.2 million in 3Q16, a rise of 52.4% over 3Q15.
Sonoco Products (SON) made the following projections for 4Q16:
- GAAP EPS in the range of $0.95–$1.04
- base EPS in the range of $0.60–$0.65
The company made the following projections for fiscal 2016:
- GAAP EPS in the range of $2.73–$2.82
- base EPS in the range of $2.70–$2.75
- cash from operations of ~$398 million
- free cash flow of ~$61 million
- capital investments of ~$190 million
It also made the following projections for fiscal 2017:
- base EPS in the range of $2.68–$2.78
- cash from operations of ~$470 million
- free cash flow of ~$126 million
Currently, Sonoco Products (SON) is working with its customers to improve innovation in its packaging. The company is also planning to invest ~$50 million in product innovation in 2017.
The company also reported, “Sanders announced the store launch of the Company’s revolutionary alternative to traditional metal cans, called the TruVue® clean can. TruVue uses Sonoco’s patented Freshlock® technology and is made of a highly engineered, multilayer plastics substrate, allowing consumers to see the product inside.”
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