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NEW YORK - Sonoco Products Company (NYSE:SON) shares fell 4.5% in after-hours trading Tuesday after the packaging company reported fourth quarter revenue that missed analyst expectations and provided weaker-than-expected guidance for 2025.
Sonoco posted Q4 revenue of $1.36 billion, falling short of the $1.59 billion consensus estimate. Adjusted earnings per share came in at $1.17, slightly below the $1.19 analysts were expecting.
For the full year 2025, Sonoco forecasts adjusted EPS of $6.00-$6.25, below the $6.40 Wall Street consensus. The company expects cash flow from operations of $750-$850 million and adjusted EBITDA of $1.3-$1.4 billion for 2025.
"Our fourth-quarter results were within our expectations as we benefited from strong productivity improvements that more than offset price/cost headwinds that persisted across most of our businesses," said Howard Coker, President and CEO of Sonoco.
The company noted it completed the acquisition of Eviosys, a European food can manufacturer, in December. Sonoco said it expects to achieve approximately 20% growth in adjusted net income in 2025 compared to 2024.
While Sonoco’s earnings were roughly in line with estimates, the significant revenue miss and conservative 2025 outlook appear to be weighing on the stock. Investors will likely be looking for more details on the company’s growth expectations and integration plans for Eviosys on the upcoming earnings call.
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