Sonoco Q1 sales fall due to ThermoSafe divestiture, miss estimates

Sonoco Products

21/04/2026 21:31

Overview

U.S. packaging supplier's Q1 sales fell 1.9% and missed analyst expectations

Adjusted EPS for Q1 was in line with analyst expectations

Company expects full-year adjusted EPS at low end of prior guidance due to inflation, lower demand

Outlook

Sonoco sees 2026 net sales at $7.25 bln to $7.75 bln, unchanged

Company targets low end of 2026 adjusted EPS guidance of $5.80 to $6.20

Sonoco says inflation and uncertain macroeconomic conditions may impact demand and input costs

Result Drivers

DIVESTITURE IMPACT - Q1 sales declined primarily due to the November 2025 divestiture of the ThermoSafe business

LOWER VOLUME/MIX - Lower volumes and less favorable mix weighed on both Consumer and Industrial segments

Company press release: ID:nGNX6H0CjS

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$1.68 bln
$1.71 bln (9 Analysts)
Q1 Adjusted EPS
Meet
$1.20
$1.20 (9 Analysts)
Q1 EPS
$0.68
Q1 Net Income
$68 mln
Q1 Operating profit
$127 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "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 Co is $67.00, about 18% above its April 20 closing price of $56.80

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

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.)