Sonoco Earnings: Volumes Remain Pressured Amid Tepid Global Packaging Demand

No-moat-rated Sonoco reported underwhelming second-quarter results, largely due to higher-than-expected inventory destocking and softening end market demand. Net sales fell almost 11% year over year as all three segments saw declines in volumes. Despite strong demand for some of its consumer packaging, Sonoco continues to navigate a challenging operating environment as inventory management and inflationary pressures weigh on demand for its products. As such, we maintain our $55 fair value estimate.