Sonoco Projects Strong Earnings, Focus on Strategic Moves

Sonoco Products Company projects adjusted EPS of $6.00-$6.20 for 2025. The company's strategy includes divesting TFP and focusing on strong free cash flow, which may positively impact stock performance moving forward.

Date: 19-02-2025

AI Rating: 7

Earnings Per Share (EPS)
Sonoco Products Company anticipates adjusted earnings per share of $6.00 to $6.20 for the full year 2025. This positive outlook indicates a strong earnings potential, which could positively influence investor sentiment and stock price appreciation.

Free Cash Flow (FCF)
The company projects cash flow from operating activities to be between $750 million and $850 million. Strong free cash flow allows the company to invest in growth opportunities, return value to shareholders, and pay down debt, which tends to be favorable for stock valuation.

Strategic Initiatives
President and CEO Howard Coker pointed out the focus on integrating Eviosys and achieving a synergy target of $100 million over two years. These strategic moves, along with plans to reduce leverage to 3.0X to 3.3X Net Debt/Adjusted EBITDA by the end of 2026, could enhance overall financial stability and attract long-term investors.

Stocks: SON