Sonoco Products (SON) rose 0.98% to close at $54.53 per share during the second week of January 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.98%, 2.0%, and 3.5%, respectively, on January 13.
SON is trading 1.5% above its 20-day moving average, 2.6% above its 50-day moving average, and 9.0% 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 0.79% on January 13.
The market caps of Sonoco Products’s competitors are as follows:
Latest news on SON
In a press release on January 11, 2017, Sonoco Products reported, “Sonoco (SON) today announced it is implementing a $60 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada.”
According to Palace Stepps, Sonoco’s US and Canada Paper and Adhesives division vice president of sales and marketing, “This increase is necessary to capture higher recycled fiber and other costs so we can continue providing high-quality, value-adding products to our customers.”
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
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
In the final part of this series, let’s look at Mondelēz International (MDLZ).