Sonoco Products (SON) fell 3.1% to close at $52.85 per share during the fifth week of November 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.1%, 6.8%, and 33.3%, respectively, as of December 2, 2016.
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 MidCap Low Volatility ETF (XMLV) invests 1.3% of its holdings in Sonoco. The YTD price movement of XMLV was 16.2% on December 2, 2016.
The market caps of Sonoco Products’ competitors are as follows:
Latest news on Sonoco Products
Sonoco Products has made the following changes in its management team, effective January 3, 2017:
- Robert C. Tiede has been appointed executive vice president and chief operating officer. Tiede will take care of the diversified consumer, industrial, and protective packaging businesses. He will report to the company’s chief executive officer, M. Jack Sanders.
- Vicki B. Arthur has been promoted to vice president of plastic packaging and protective solutions.
- R. Howard Coker has been promoted to senior vice president of rigid paper containers and paper/engineered carriers international.
- Rodger D. Fuller has been promoted to senior vice president of paper/engineered carriers US/Canada and display and packaging.
Performance of Sonoco Products in fiscal 3Q16
Sonoco Products reported fiscal 3Q16 net sales of $1.21 billion, a fall of 2.7% from $1.24 billion in fiscal 3Q15. The company’s gross profit margin and EBIT (earnings before interest and tax) margin rose 100 basis points and 230 basis points, respectively, between fiscal 3Q15 and fiscal 3Q16.
Its net income and EPS (earnings per share) rose to $65.4 million and $0.64, respectively, in fiscal 3Q16, compared to $43.9 million and $0.43, respectively, in fiscal 3Q15.
SON’s cash and cash equivalents and inventories fell 12.7% and 2.4%, respectively, between fiscal 4Q15 and fiscal 3Q16. It reported free cash flow of $85.2 million in fiscal 3Q16, a rise of 52.4% over fiscal 3Q15.
Sonoco Products has made the following projections for fiscal 4Q16:
- GAAP[1. generally accepted accounting principles] EPS and base EPS of $0.95–$1.04 and $0.60–$0.65, respectively
The company has made the following projections for fiscal 2016:
- GAAP EPS and base EPS of $2.73–$2.82 and $2.70–$2.75, respectively
- cash from operations of ~$398.0 million
- free cash flow of ~$61.0 million
- capital investments of ~$190.0 million
In the next part, we’ll take a look at Snyder’s-Lance (LNCE).