HARTSVILLE, S.C. - Sonoco Products Company (NYSE: NYSE:SON), a leading sustainable global packaging firm, reported its financial outcomes for the second quarter ended June 30, 2024.
The company announced an adjusted EPS of $1.28, surpassing analyst expectations by $0.04. However, revenue fell short of estimates, coming in at $1.62 billion against a consensus of $1.69 billion, marking a decline from the previous year's $1.705 billion.
The company's GAAP net income attributable to Sonoco stood at $91 million, a decrease from the prior year's $115 million. The GAAP diluted earnings per share also dropped to $0.92 from $1.16 YoY. Despite the revenue shortfall, the company achieved a solid productivity of $51 million during the quarter and $102 million for the first half of 2024.
Sonoco's President and CEO, Howard Coker, highlighted the company's sequential growth in adjusted EBITDA and EPS. Coker attributed the strong second-quarter results to productivity improvements and organic volume growth in the Industrial segment. He also emphasized the company's focus on a disciplined capital deployment strategy, which includes investing in capital and innovation projects while returning capital to shareholders.
Looking ahead, Sonoco provided guidance for the third quarter of 2024, projecting an adjusted EPS range of $1.40 to $1.60, which brackets the analyst consensus of $1.46. For the full year 2024, the company expects adjusted EPS to be between $5.00 and $5.30, compared to the consensus estimate of $5.08.
Sonoco's reaffirmed full-year 2024 guidance for adjusted EBITDA and operating cash flow, excluding the effects of the pending Eviosys acquisition and potential divestitures, suggests management's confidence in meeting its financial expectations for the year.
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