WASHINGTON (dpa-AFX) - While reporting its fourth-quarter financial results today, Sonoco Products Co. (SON) raised its earnings outlook for fiscal 2018, citing a lower than expected tax rate following the implementation of the U.S. tax reform.
For fiscal 2018, Sonoco raised its base earnings outlook to a range of $3.16 to $3.26 per share from the previous guidance of $3.00 to $3.10 per share.
The revised outlook reflects a lower than expected effective tax rate of between 26 percent and 27 percent following implementation of the U.S. Tax Cuts and Jobs Act.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $3.22 per share for the year. Analysts' estimates typically exclude special items.
The company also raised its outlook for operating cash flow and free cash flow to a range of $560 million to $580 million, and $180 million and $200 million, respectively. This is $30 million to $50 million more than previous guidance.
For the first quarter, Sonoco forecast base earnings in a range of $0.69 to $0.75 per share, compared to $0.59 per share in the year-ago period. The Street expects earnings of $0.72 per share for the quarter.
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