Sonoco Products Company’s ( SON Quick Quote SON - Free Report) Protective Solutions business introduced two paper-based packaging options — the EnviroSense FiberMax Bulk Box and the EnviroSense FiberMax Master Roll package — for heavyweight and high-value products adding to its sustainable packaging options. The FiberMax Bulk Box packaging will aid companies using heavyweight products to protect their items, reduce storage space, maximize transportation efficiency as well as fortify stacking strength while also helping their customers easily recycle the packaging at the end of its useful life. Likewise, the EnviroSense FiberMax Master Roll packaging will assist heavy, high-value materials manufacturers by providing rolled form of packaging such as films, foils and laminates to avoid any damage, improve storage utilization, lower costs, and simplify recycling process after use. Notably, both packaging solutions provide enough strength to hold thousands of pounds and are 100% recyclable. The FiberMax Bulk Box packaging costs are, in fact, half of the equally-sized wooden crates packaging, while the FiberMax Master Roll packaging are more than 50% lighter and 25% more cost effective compared with wooden crates. The FiberMax Bulk Box and FiberMax Master Roll packaging solutions add to Sonoco’s diverse sustainable packaging options. The company’s EnviroSense portfolio includes a variety of packaging materials and structures, ranging from 100% recyclable paperboard cans and mono-material flexible pouches to rigid plastic packaging. Sonoco reported adjusted earnings of 86 cents in the third quarter, beating the Zacks Consensus Estimate of 81 cents as well as management’s guidance of 73-83 cents. Net sales of $1.31 billion came in line with the Zacks Consensus Estimate. The company anticipates consumer packaging businesses to perform well in the current quarter as sales from food packaging will continue to benefit from stay-at-home customers. Approximately 80% of the Consumer Packaging segment’s sales flow in from food packaging, for which the company is witnessing increased orders. Further, paperboard operations in North America are likely to be relatively steadier, as elevated demand for the tissue and the towel market will help offset declines from some industrial converted-product businesses. The Protective Solutions segment is likely to witness improved demand in the pharmaceutical and appliance served markets during the December-end quarter. Moreover, the company’s focus on optimizing businesses through productivity improvement, standardization and cost control will aid the company in the near term. Nevertheless, Sonoco expects fourth-quarter adjusted earnings per share between 70 cents and 80 cents compared with the earnings of 75 cents reported in fourth-quarter 2019. For 2020, management projects adjusted earnings per share between $3.29 and $3.39. The mid-point of the range indicates a year-over-year decline of 5%. Further, the company expects demand to dip, suggesting the normal year-end slowdown trend. Price Performance
Shares of Sonoco have gained 16.9% over the past six months compared with the
industry's growth of 29.9%. Zacks Rank & Stocks to Consider
Sonoco currently carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks in the Industrial Products sector are Crown Holdings, Inc. ( CCK Quick Quote CCK - Free Report) , iRobot Corporation ( IRBT Quick Quote IRBT - Free Report) and SiteOne Landscape Supply, Inc. ( SITE Quick Quote SITE - Free Report) . While Crown Holdings and iRobot flaunt a Zacks Rank #1 (Strong Buy), SiteOne Landscape carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Crown Holdings has a projected earnings growth rate of 11.7% for fiscal 2020. Over the past six months, the company’s shares have appreciated 56.2%. iRobot has an estimated earnings growth rate of 18.8% for the ongoing year. The company’s shares have gained 19.2% over the past six months. SiteOne Landscape has an expected earnings growth rate of 28.6% for 2020. The stock has climbed 51.7% in six months’ time. Biggest Tech Breakthrough in a Generation
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