Sonoco Products Q3 sales miss estimates on lower volume, weak food can demand

Sonoco Products

Wed 22:12

Overview
Global packaging firm's Q3 net sales fell 4.2% yr/yr, missing analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company posted GAAP net loss due to $829 mln goodwill impairment charge

Outlook
Sonoco sees 2026 net sales between $7.20 bln and $7.40 bln
Company targets 2026 adjusted EPS of $5.30 to $5.50
Sonoco expects 2026 adjusted EBITDA of $1.20 bln to $1.25 bln

Result Drivers
WEATHER IMPACT - Co said drought in Europe and U.S. reduced crop yields and pressured food can demand
HIGHER PRICES - Co said increased selling prices helped offset inflation and tariffs, but lower volume/mix weighed on sales
COST HEADWINDS - Co said productivity savings and cost reductions were more than offset by inflation-driven price/cost headwinds and lower volume/mix

Company press release: ID:nGNX5bFfJq

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$2.04 bln
$2.08 bln (10 Analysts)
Q3 Adjusted EPS
Miss
$1.67
$1.76 (10 Analysts)
Q3 Loss Per Share
 
$7.36
 
Q3 Net Loss
 
$732 mln
 
Q3 Operating profit
 
-$638 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy"
Wall Street's median 12-month price target for Sonoco Products Company is $61.00, about 19.7% above its October 21 closing price of $50.96
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Oct 19 - Silgan and American Industrial to buy Trivium Packaging in $3.4 billion deal
Oct 19 - Global food inflation is expected to intensify as supply shocks pile up

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)