Loading...
•
Dec 31, 2020
Sonoco Q4 2020 Earnings Report
Reported financial results for the fourth quarter and full year, both ending December 31, 2020.
Key Takeaways
Sonoco's fourth-quarter net sales were $1.38 billion, up from $1.31 billion in 2019. Base earnings for the quarter were $0.82 per diluted share, compared with $0.75 in 2019. The company achieved record cash flow from operations and free cash flow in 2020.
Fourth-quarter 2020 GAAP loss per diluted share was $(0.12), compared with GAAP earnings per diluted share of $0.44 in 2019.
Base net income attributable to Sonoco for the quarter was $0.82 per diluted share, compared with $0.75 in 2019.
Fourth-quarter 2020 net sales were $1.38 billion, up from $1.31 billion in 2019.
On November 30, 2020, Sonoco sold its Europe contract packaging business for $120 million in cash, net of working capital and other adjustments.
Revenue by Segment
Forward Guidance
Sonoco projects full-year 2021 base earnings to be in the range of $3.40 to $3.60 per diluted share and expects first-quarter 2021 base earnings to be in the range of $0.80 to $0.90 per diluted share. Full-year 2021 operating cash flow and free cash flow are expected to be in a range of $570 million to $600 million and $270 million and $300 million, respectively.
Positive Outlook
- Consumer Packaging segment should continue to benefit from consumers' at-home eating habits.
- Demand in Industrial Paper Packaging served markets continues to show sequential improvement.
- Expect solid demand in pharmaceutical and industrial markets.
- Expect demand for cold-chain shipping solutions for FDA-approved COVID vaccines and therapeutics to expand as last-mile distribution systems become more organized.
- Remain confident that Sonoco is well-positioned for when the grip of the pandemic weakens and will continue to invest to reinforce the long-term potential of our core businesses, while remaining committed to returning value to our shareholders.
Challenges Ahead
- Continue to face a negative price/cost relationship due to escalating year-over-year recovered paper, freight and other operating costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...