Sonoco Products Earnings: Moderate Pricing Gains Soften the Impact of Volume Declines

No-moat-rated Sonoco Products reported first-quarter earnings that were in line with our expectations. Sales decreased roughly 2% year over year as pricing gains in both segments were not enough to offset lower volumes across much of its portfolio. Despite near-term uncertainty, management raised its full-year adjusted EPS guidance to $5.85 (midpoint) from $5.80 (midpoint). We think this is attainable, but Sonoco faces near-term volume headwinds that could constrain its financial performance throughout the remainder of the year. As such, we maintain our $55 fair value estimate.