Sonoco Earnings: Soft End Market Demand Pressures Volumes and Pricing; Shares Fairly Valued

No-moat-rated Sonoco reported lackluster first-quarter results. Volumes remained muted during the quarter, resulting in a 5.3% decline in sales year over year. This was driven by declines in all three segments as weak macroeconomic conditions continued to weigh on the company. Despite these challenges, the company was able to achieve operational efficiencies and generate adjusted earnings per share above the midpoint of guidance. Nevertheless, we've decreased our fair value estimate to $53 per share from $55 to reflect lower revenue during the year.