fell 2.4% Wednesday after the packaging company provided fourth-quarter guidance below the analysts projection.
The company earned $61.09 million, or 60 cents a share in the quarter ended Sept. 24, compared with $45.91 million, or 46 cents a share, a year ago. Adjusted for items, the company earned 61 cents a share in the most recent quarter. Analysts surveyed by Thomson First Call were expecting earnings of 56 cents a share.
Third-quarter revenue rose by 5.7% from a year ago to $931.52 million as against the analysts' expectations of $933.50 million.
The company expects adjusted earnings of 53 cents a share to 55 cents a share in the fourth quarter and raised its full year guidance $2.11 a share to $2.13 a share, including about 3 cents a share related to stock based expenses. Analysts were projecting earnings of 59 cents a share for the fourth quarter and $2.11 a share for the full year.
By segment, revenue from consumer packaging segment rose 4.3% to $328.65 million, from tubes and cores/paper rose 5.2% to $387.48 million and from packaging services rose 6.1% to $122.01 million.
"The increase in year-over-year base earnings in the third quarter of 2006 reflected a continued favorable selling price/material cost relationship and the impact of productivity improvements, which were partially offset by higher energy, freight and labor costs throughout the company," Sonoco said. "The impact of higher volume had little impact on overall earnings due to the unfavorable shifts in the mix within certain businesses."
Sonoco fell 85 cents, or 2.4% to $34.60.
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