Yahoo Finance Sonoco (SON) Signs Deal With ENGIE to Reduce Carbon Emissions
Sonoco Products Company SON announced that it signed a Virtual Power Purchase Agreement ("VPPA") for production from ENGIE's Big Sampson Wind Project. This move marks SON’s first renewable energy project and is a step forward in Sonoco's integrated approach to corporate sustainability.
Big Sampson is a wind power project of ENGIE, which is currently under construction in Crockett County, TX. The project adds to ENGIE North America's more than seven gigawatts of renewable energy output in operation or under construction throughout the United States and Canada.
The project will consist of 60 wind turbines, each expected to have a generating capacity of 4.5 megawatts. It is anticipated to be completed in late 2025, employing 400 trained construction experts. Once operational, 10 to 15 full-time workers will support the system on-site.
Under the VPPA and subject to certain conditions, Sonoco and ENGIE have agreed to a deal for an estimated 140 megawatts of electricity per year, which represents approximately 48% of Sonoco's U.S. electricity consumption in 2025 and around 52% of Big Sampson's expected output capacity for 15 years beginning with the plant's commercial operation. Sonoco expects the VPPA to help reduce its baseline carbon emissions by almost 14%.
Sonoco plans to reduce global Scope 1 and Scope 2 emissions by 25% by 2030 from a 2020 baseline through a variety of corporate activities. It intends to serve enhanced package design, install energy-efficient equipment, and obtain renewable energy sources.
The company reported adjusted earnings per share of $1.02 in the fourth quarter of 2023, missing the Zacks Consensus Estimate of $1.07. The figure came within its guidance of $1.01-$1.16. The bottom line fell 20% from the prior-year quarter.
Sonoco’s net sales were $1.64 billion, beating the Zacks Consensus Estimate of $1.59 billion. The top line, however, fell 2.4% year over year on lower volumes and pricing.
Price Performance
SON shares have lost 4.6% in the past year against the industry’s growth of 3.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Sonoco currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Proto Labs, Inc. PRLB, Applied Industrial Technologies AIT and Cadre Holdings, Inc. CDRE. PRLB currently sports a Zacks Rank #1 (Strong Buy), and AIT and CDRE carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 43.3% in the past year.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 72% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sonoco Products Company (SON) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Proto Labs, Inc. (PRLB) : Free Stock Analysis Report
Cadre Holdings, Inc. (CDRE) : Free Stock Analysis Report
