Sonoco (NYSE: SON) reported Q1 EPS of $0.74, $0.02 better than the analyst estimate of $0.72. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.29 billion.

First Quarter Highlights

• First-quarter 2018 GAAP earnings per diluted share were $0.73, compared with $0.53 in 2017.
• First-quarter 2018 GAAP earnings included after-tax charges of $0.01 per diluted share related to restructuring and acquisition-related expenses, which were mostly offset by the effect of the change in the U.S. corporate tax rate on adjustments to deferred taxes. In the first quarter of 2017, GAAP results included $0.06 per diluted share, after tax, in restructuring and acquisition-related charges.
• Base net income attributable to Sonoco (base earnings) for first quarter 2018 was $0.74 per diluted share, compared with $0.59 in 2017. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.) Sonoco previously provided first-quarter 2018 base earnings guidance of $0.69 to $0.75 per diluted share.
• First-quarter 2018 net sales were $1.30 billion, up 11.2 percent, from $1.17 billion in 2017.
• Cash flow from operations was $119.8 million in the first quarter of 2018, compared with $67.4 million in 2017. Free cash flow for the first quarter was $44.9 million, compared with $(18.4) million in 2017. (See free cash flow definition and reconciliation to cash flow from operations later in this release.)
• On April 12, 2018, Sonoco completed the acquisition of Highland Packaging Solutions, a Plant City, Fla.-based, leading manufacturer of thermoformed packaging for fresh fruits, vegetables and eggs for approximately $150 million in cash.

Second Quarter and Full-Year Guidance Update

• Base earnings for the second quarter of 2018 are estimated to be in the range of $0.83 to $0.89 per diluted share, compared to $0.71 per diluted share in the second quarter of 2017.
• Full-year 2018 base earnings guidance has been raised to $3.22 to $3.32 per diluted share, from the previous guidance of $3.16 to $3.26 per diluted share, to reflect a downward revision in the expected effective tax rate to approximately 26 percent and expected earnings accretion from the Highland Packaging acquisition.
• Full-year 2018 operating cash flow and free cash flow guidance remain in the range of $560 million to $580 million and $180 million and $200 million, respectively.

GUIDANCE:

Sonoco sees FY2018 EPS of $3.22-$3.32, versus the consensus of $3.21.

For earnings history and earnings-related data on Sonoco (SON) click here.