Avery Dennison Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Avery Dennison Corporation (NYSE:AVY) will unveil its latest earnings on Tuesday, January 31, 2012. Avery Dennison is a global manufacturer of pressure-sensitive materials, office products, and a variety of paper products. It provides businesses and consumers with identification solutions and converted products, such as tickets, tags, and labels. .

Avery Dennison Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 46 cents per share, a decline of 53.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 50 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 46 cents during the last month. Analysts are projecting profit to rise by 29.2% versus last year to $2.23.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of 48 cents per share versus a mean estimate of profit of 58 cents per share. In the second quarter, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.6 billion in revenue this quarter, a decline of 2.4% from the year ago quarter. Analysts are forecasting total revenue of $6.69 billion for the year, a rise of 2.8% from last year’s revenue of $6.51 billion.

Analyst Ratings: Analysts are bullish on Avery Dennison as two analysts rate it as a buy, none rate it as a sell and two rate it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the third quarter, profit fell 22.4% to $49.8 million (47 cents a share) from $64.2 million (60 cents a share) the year earlier, missing analyst expectations. Revenue rose 3.6% to $1.7 billion from $1.64 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 2.7% in the second quarter from the year earlier, climbed 6.7% in the first quarter from the year-ago quarter and 7.6% in the fourth quarter of the last fiscal year.

The company has seen net income fall in each of the last three quarters. Net income fell 12.5% in the second quarter and 18.1% in the first quarter.

Competitors to Watch: MeadWestvaco Corp. (NYSE:MWV), Smurfit-Stone Container Corp. (NYSE:SSCC), Bemis Company, Inc. (NYSE:BMS), Verso Paper Corp. (NYSE:VRS), ACCO Brands Corporation (NYSE:ABD), Office Depot (NYSE:ODP), Target (NYSE:TGT), OfficeMax (NYSE:OMX), Staples (NASDAQ:SPLS).

Stock Price Performance: During November 25, 2011 to January 25, 2012, the stock price had risen $4.67 (19.4%) from $24.03 to $28.70. The stock price saw one of its best stretches over the last year between November 23, 2011 and December 7, 2011 when shares rose for 10-straight days, rising 16.6% (+$3.96) over that span. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven-straight days, falling 10.9% (-$2.92) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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