Sonoco (SON) Misses Q3 Earnings & Sales Estimates, Trims View
Zacks Investment Research | Oct 20, 2019 09:25PM ET
Sonoco Products Company’s (NYSE:SON) third-quarter 2019 adjusted earnings increased 12.8% year on year to 97 cents per share. Earnings also exceeded the upper-end of management’s guidance of 88-94 cents. The reported figure, however, missed the Zacks Consensus Estimate of 91 cents, resulting in a negative surprise of 6.6%.
On a reported basis, including one-time items, earnings per share came in at 91 cents, compared with the year-ago quarter’s 72 cents.
Sonoco’s net sales came in at $1.35 billion, marginally down from the prior-year quarter’s $1.36 billion. This downside primarily resulted from lower volumes and stronger U.S. dollar, partly offset by increased sales from acquisitions. The sales figure also missed the Zacks Consensus Estimate of $1.38 billion.
Operational Update
Cost of sales came in at $1.09 billion compared with the $1.10 billion recorded in the year-earlier quarter. Gross profit during the third quarter totaled $265.5 million, up from the year-ago quarter’s $259.6 million. Gross margin came in at 19.6% compared with 19.0% reported in the comparable period last year.
Selling, general and administrative expenses totaled $120.3 million, down 11.5% year over year. The downside primarily resulted from acquisition-related costs. Adjusted operating income increased 12.1% year over year to $139 million during the July-September quarter. Operating margin came in at 10.3% compared with the 9.1% recorded in the year-ago quarter.
Sonoco Products Company Price, Consensus and EPS Surprise
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