Sonoco Earnings: Product Volumes Remain Pressured Amid Tepid End Market Demand

No-moat-rated Sonoco reported middling fourth-quarter and full-year results, largely due to tepid consumer and industrial demand. Full-year net sales for each of the individual segments decreased year over year, resulting in a 6.5% decrease in 2023 revenue from the prior year. Fourth-quarter results were marginally better, with net sales declining only 2.5% year over year, largely due to the benefit of acquisitions. Adjusted earnings per share for the company came in at $5.26, which was toward the bottom of management's published guidance range. We maintain our $55 fair value estimate as the time value of money was offset by a slight decrease in our near-term forecast.