Yahoo Finance Sonoco (SON) Sells Timberland to Maximize Shareholder Value
Sonoco Products Company SON announced the sale of 55,000 acres of timberland in South Carolina on behalf of its clients to Manulife Investment Management. The transaction was completed for $72 million in cash.
Manulife Investment Management is a timberland and agricultural investment manager that manages around 6 million acres globally. It has extensive experience with sustainable transactions.
The sale will maximize the value for Sonoco’s shareholders.
Sonoco delivered adjusted earnings per share of $1.27 in the fourth quarter of 2022, beating the Zacks Consensus Estimate of $1.26. The figure was within the company’s guidance of $1.20-$1.30. The bottom line improved 28% from the prior-year quarter, driven by strong strategic pricing performance across most of its businesses.
Net sales were $1,676 million, which jumped 16.5% year over year, courtesy of strong pricing performance and sustained robust results from the Metal Packaging acquisition. However, the negative impacts of foreign currency translation and lower industrial volumes somewhat negated the gains.
On Mar 21, 2022, the company announced that it raised its first-quarter 2023 earnings guidance on higher demand. It expects adjusted earnings per share of $1.30-$1.40 for the first quarter of 2023. The new range has moved up from the company’s previously disclosed range of $1.15-$1.25. Operating cash flow for the year is expected between $925 million and $975 million, and free cash flow is projected between $550 million and $650 million.
Price Performance
Sonoco’s shares have lost 2.6% in the past year compared with the industry’s fall of 3.4%.
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Zacks Rank and Stocks to Consider
Sonoco currently carries a Zack Rak #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are OI Glass OI, Encore Wire WIRE, and Illinois Tool Works ITW. OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and ITW has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 70.2% in the last year.
Encore Wire has an average trailing four-quarter earnings surprise of 146.8%. The Zacks Consensus Estimate for WIRE’s 2023 earnings is pegged at $19.76 per share. The consensus estimate for 2023 earnings has moved north by 1.7% in the past 60 days. Its shares gained 52.1% in the last year.
The Zacks Consensus Estimate for Illinois Tool Works’ fiscal 2023 earnings per share is pegged at $9.61, suggesting an increase of 4.8% from that reported in the last year. The consensus estimate for fiscal 2023 earnings rose 4% in the last 60 days. ITW has a trailing four-quarter average earnings surprise of 0.9%. Its shares gained 9% in the last year.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
O-I Glass, Inc. (OI) : Free Stock Analysis Report
Sonoco Products Company (SON) : Free Stock Analysis Report
Encore Wire Corporation (WIRE) : Free Stock Analysis Report
