Core Insights - Sonnet BioTherapeutics Holdings, Inc. presented data at the 2025 AACR:IO Conference, showcasing its Fully Human Albumin Binding (FHAB®) platform for targeted immunotherapy [2][3] - The FHAB platform enhances tumor targeting and retention, potentially improving the efficacy of immunotherapeutic drugs [4][5] Company Overview - Sonnet is a clinical-stage biotechnology company focused on developing targeted immunotherapeutic drugs using its proprietary FHAB platform [9][10] - The lead program, SON-1010, is designed to treat advanced solid tumors and is currently in a Phase 1/2a study in combination with atezolizumab for platinum-resistant ovarian cancer [10] Technology and Mechanism - The FHAB platform links cytokines to a fully human albumin-binding domain, allowing for prolonged half-life and improved pharmacokinetics [4][6] - SON-1010, a recombinant human interleukin-12 (rhIL-12), is engineered to enhance immune responses by targeting the tumor microenvironment [8][10] Clinical Development - Ongoing studies include SON-1010 monotherapy, co-administration with checkpoint inhibitors, and alternating with chemotherapy to enhance therapeutic effects [6][7] - In December 2024, clinical benefit was reported in 48% of patients treated with SON-1010 at the highest dose [6] Future Prospects - The company plans to announce additional data from ongoing studies in 2025, indicating a commitment to advancing its clinical programs [5][6] - SON-1210, another candidate in development, aims to combine IL-12 with IL-15 for enhanced efficacy in treating solid tumors [10]

Company Overview - Sonoco Products, based in Hartsville, SC, is a leading provider of consumer packaging, industrial products, protective packaging, and packaging supply chain services, with a focus on manufacturing paperboard primarily from recycled materials [12]. Investment Ratings - Sonoco is rated as a 1 (Strong Buy) on the Zacks Rank, indicating strong potential for investment [12]. - The company has a VGM Score of A, reflecting its attractiveness across various investment styles [12][13]. Value Metrics - Sonoco has a Value Style Score of A, supported by favorable valuation metrics, including a forward P/E ratio of 7.57, which is appealing to value investors [13]. - The Zacks Consensus Estimate for fiscal 2025 has increased by $0.31 to $6.11 per share, indicating positive earnings revisions [13]. Earnings Performance - Sonoco has demonstrated an average earnings surprise of 2%, suggesting a consistent ability to exceed earnings expectations [13].

Core Viewpoint - Sonoco Products Company reported mixed financial results for the fourth quarter of 2024, with adjusted EPS slightly missing estimates and net sales falling short of expectations, while the company continues to navigate challenges from acquisitions and divestitures [1][3][13]. Financial Performance - Adjusted EPS for Q4 2024 was $1.17, missing the Zacks Consensus Estimate of $1.18, but within the company's guided range of $1.15 to $1.35. Including the impact of the Eviosys acquisition, adjusted EPS was $1.00, down 2% from $1.02 in the previous year [1][2]. - Net sales for Q4 were $1.36 billion, missing the Zacks Consensus Estimate of $1.75 billion, but reflecting a 2% year-over-year increase from the adjusted figure of $1.34 billion in the prior year [3][4]. - The cost of sales increased by 3% year-over-year to $1.08 billion, leading to a gross profit of $283 million, which is a 1.7% decline from the previous year. The gross margin decreased to 20.8% from 21.6% [5]. - Adjusted operating income fell by 5% to $127 million, with an operating margin of 9.3%, down from 10.1% in the prior year [5]. Segment Performance - The Consumer Packaging segment saw net sales rise by 18% year-over-year to $705 million, driven by Eviosys sales and volume growth, with adjusted EBITDA of $100 million, up 9% [7]. - The Industrial Paper Packaging segment reported net sales of $571 million, a 4% decline year-over-year, but adjusted segment EBITDA grew by 11.9% to $102 million [8]. - The All Other segment experienced a significant 40% drop in sales to $88 million, with adjusted EBITDA falling to $8 million from $23 million in the previous year [9]. Cash Flow and Balance Sheet - At the end of 2024, Sonoco had cash and cash equivalents of $431 million, up from $139 million at the end of 2023, and generated operating cash flow of approximately $834 million [10][11]. - Total debt increased to around $7 billion from $3 billion as of December 31, 2023 [11]. Strategic Moves - Sonoco has agreed to sell its Thermoformed and Flexibles Packaging business and global Trident business to TOPPAN Holdings, Inc. for approximately $1.8 billion, aiming to use proceeds to reduce debt levels [12]. 2024 Performance and Guidance - For the full year 2024, adjusted EPS declined by 7% to $4.89, missing the consensus estimate of $5.08, while revenues decreased by 2.5% to $5.3 billion [13]. - The company projects adjusted EPS for 2025 to be between $6.00 and $6.20, with adjusted EBITDA expected between $1.3 billion and $1.4 billion [14]. Stock Performance - Sonoco's shares have decreased by 15.6% over the past year, contrasting with the industry's growth of 9.6% [15].

Financial Data and Key Metrics Changes - In Q4 2024, adjusted earnings per share (EPS) excluding Eviosus were $1.17, within the lower end of guidance, with a year-over-year EPS improvement of 14.7% [20][21] - Net sales increased by 2% to $1.4 billion, driven by low single-digit volume gains and the impact of December sales from the Eviosus acquisition [22] - Adjusted EBITDA rose by 5% to $247 million, with adjusted EBITDA margins improving by 46 basis points to 14.9% [12][23] Business Line Data and Key Metrics Changes - Consumer segment sales increased by 18% due to the Eviosus acquisition, while adjusted EBITDA margins grew by 9% year-over-year [23][24] - Industrial segment sales decreased by 4% to $571 million, but would have increased by 2.7% year-over-year when adjusting for the exit of operations in China and recycling reclassification [25][26] - All other businesses reported sales of $88 million, with adjusted EBITDA of $8 million, negatively impacted by the divestiture of Protective Solutions and slowing sales from COVID vaccine distribution [28] Market Data and Key Metrics Changes - The company experienced operational impacts from two hurricanes in Q4, particularly affecting its largest thermoforming facility in Florida [13] - The North American metal can business showed sequential improvement, while European operations faced challenges with soft pricing and volumes [58][60] Company Strategy and Development Direction - The company aims to achieve $100 million in synergies from the Eviosus acquisition over two years and is focusing on integrating its operations [9][10] - A strategic review of the cold chain temperature-controlled packaging business is ongoing to concentrate on metal and paper packaging [10] - The capital allocation strategy emphasizes reducing leverage to 3 to 3.3 times net debt to adjusted EBITDA by the end of 2026 [43][128] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early 2025 performance, with expectations of low single-digit organic growth in both consumer and industrial segments [31][32] - The company anticipates a stronger dollar and an average effective tax rate of approximately 25% for 2025 [30] - Management highlighted the importance of controlling internal factors amidst macroeconomic uncertainties [52] Other Important Information - The company generated $834 million in operating cash flow, marking the second-largest operating cash flow year in its history [13] - Capital expenditures for 2024 are projected at approximately $300 million, with a focus on growth and margin expansion opportunities [35][129] Q&A Session Summary Question: Can you talk about the exit rates or early 1Q rates across your most important businesses? - Management indicated an adjusted run rate for Eviosus around $390 million for 2024, with a plan for a 10% increase [50] Question: How is Eviosus performing relative to the original EBITDA guidance? - The company is optimistic about Eviosus, projecting a 10% increase in EBITDA [50] Question: What are the expectations for TFP in the first quarter? - TFP's performance is expected to be similar to Q4 2024, around $20 million to $25 million [53] Question: Was the industrial business on plan for Q4? - The North American industrial business performed well, but there was weakness outside North America, particularly in Europe and Asia [56][58] Question: What is the outlook for productivity in 2025? - Management expects productivity improvements of around $60 to $65 million in the base business for 2025 [114][115] Question: How is the integration of Eviosus proceeding? - Integration is progressing well, with a strong leadership team and shared best practices being implemented [103][108]

Core Insights - Sonoco Products Company reported a net loss of $43 million for Q4 2024, a significant decline from a net income of $81 million in Q4 2023, resulting in a diluted EPS of $(0.44) compared to $0.82 in the prior year [5][10][34] - The company generated strong operating cash flow of $834 million in 2024, although this was a decrease from $883 million in 2023 [19] - Sonoco's full-year 2025 guidance projects cash flow from operating activities to be between $800 million and $900 million, with adjusted net income growth expected to be around 20% year-over-year [18][20] Financial Performance - For Q4 2024, net sales were $1.363 billion, a 2% increase from $1.336 billion in Q4 2023, driven by low single-digit volume gains and partial sales from the Eviosys acquisition [4][10] - The operating profit for Q4 2024 was $56 million, down 46% from $103 million in Q4 2023, primarily due to higher acquisition-related costs [4][10] - Adjusted operating profit for Q4 2024 was $127 million, a 5% decrease from $134 million in Q4 2023 [6][10] Segment Performance - The Consumer Packaging segment saw net sales increase by 18% in Q4 2024, reaching $705 million, attributed to the Eviosys acquisition and volume growth in rigid paper containers [11][13] - The Industrial Paper Packaging segment reported net sales of $571 million, a 4% decline from $593 million in Q4 2023, impacted by lower sales related to recycling operations [12][14] - The "All Other" segment experienced a 40% decline in net sales to $88 million in Q4 2024, reflecting the sale of the Protexic business [15] Strategic Developments - Sonoco completed the acquisition of Eviosys, enhancing its global leadership in sustainable metal packaging [5][8] - The company announced the divestiture of its Thermoformed and Flexibles Packaging business to TOPPAN Holdings for approximately $1.8 billion [5][20] - Sonoco aims to achieve a two-year synergy target of $100 million from the Eviosys integration [20] Cash Flow and Capital Expenditures - Free Cash Flow for 2024 was $456 million, down from $600 million in 2023 [19] - The company invested a record $378 million in capital expenditures for growth and productivity projects during 2024 [5][19] Guidance and Outlook - Sonoco expects adjusted EPS for 2025 to be in the range of $6.00 to $6.20, with adjusted EBITDA projected between $1.3 billion and $1.4 billion [19][20] - The company is focused on reducing leverage to a target of 3.0X to 3.3X Net Debt/Adjusted EBITDA by the end of 2026 [20]

Company Performance - Sonoco reported quarterly earnings of $1.17 per share, missing the Zacks Consensus Estimate of $1.18 per share, but showing an increase from $1.02 per share a year ago, representing an earnings surprise of -0.85% [1] - The company posted revenues of $1.36 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 22.13%, and down from $1.64 billion year-over-year [2] - Over the last four quarters, Sonoco has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Outlook - Sonoco shares have underperformed the market, losing about 2.2% since the beginning of the year compared to the S&P 500's gain of 4% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.37 on $2.11 billion in revenues for the coming quarter and $6.25 on $8.51 billion in revenues for the current fiscal year [7] Industry Context - The Containers - Paper and Packaging industry, to which Sonoco belongs, is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact Sonoco's stock performance [5][8]

Sonoco Reports Fourth Quarter and Full Year 2024 Results Hartsville, S.C., U.S. - Sonoco Products Company ("Sonoco" or the "Company") (NYSE: SON), a global leader in high- value sustainable packaging, today reported financial results for its fourth quarter and fiscal year ended December 31, 2024. References in today's news release to consolidated "net sales," "operating profit," and "adjusted operating profit," and Consumer Packaging segment "segment operating profit" and "segment adjusted EBITDA" along wit ...

HARTSVILLE, S.C., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Sonoco Products Company ("Sonoco" or the "Company") (NYSE:SON), a global leader in high-value sustainable packaging, today reported financial results for its fourth quarter and fiscal year ended December 31, 2024. References in today's news release to consolidated "net sales," "operating profit," and "adjusted operating profit," and Consumer Packaging segment "segment operating profit" and "segment adjusted EBITDA" along with the corresponding year-over-ye ...

Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Sonoco (SON) or Graphic Packaging (GPK) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets compa ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...