NYSE:SONPackaging
Sonoco (SON): $302.5M One-Off Loss Sparks Margin Debate Despite Earnings Growth Outpacing History
Sonoco Products (SON) reported a net profit margin of 2.6% for the past year, slightly below the prior year’s 2.8%, while posting impressive annual earnings growth of 42.5%. This result is well ahead of its five-year average of 7.4% per year. Despite earnings volatility from a one-off $302.5 million loss, forecasts call for earnings to climb 19.1% per year and revenue to grow at 4.3% per year, even as shares trade at a premium 22.1x price-to-earnings multiple. Investors now face a balancing...