Avery Dennison Corp Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Avery Dennison Corporation (NYSE:AVY) will unveil its latest earnings on Tuesday, July 26, 2011. Avery Dennison Corp. 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. Office Depot, Inc. Second Quarter Earnings Preview>>

Avery Dennison Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 75 cents per share, a decline of 19.4% 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 97 cents. Between one and three months ago, the average estimate moved down and dropped from 89 cents during the last month. For the year, analysts are projecting net income of $2.54 per share, a decline of 19.4% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of 51 cents per share versus a mean estimate of 47 cents. Two quarters ago, it reported net income of 98 cents per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $1.83 billion in revenue this quarter, a rise of 8.9% from the year ago quarter. Analysts are forecasting total revenue of $7.06 billion for the year, a rise of 8.4% from last year’s revenue of $6.51 billion.

Analyst Ratings: Analysts seem relatively indifferent about Avery Dennison with six of seven analysts surveyed maintaining a hold rating.

Key Stats:

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 18.1% in the first quarter from the year earlier, while the figure rose more than twofold in the fourth quarter of the last fiscal year, 2.7% in the third quarter of the last fiscal year and more than twofold in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.7% to $1.66 billion in first quarter. The figure rose 7.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 5.9% in the third quarter of the last fiscal year from the year-ago quarter and 15.4% in the second quarter of the last fiscal year.

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 April 25, 2011 to July 20, 2011, the stock price had fallen $8.52 (-20.6%) from $41.38 to $32.86. The stock price saw one of its best stretches over the last year between November 30, 2010 and December 17, 2010 when shares rose for 14-straight days, rising 12.7% (+$4.70) over that span. It saw one of its worst periods between August 18, 2010 and August 26, 2010 when shares fell for seven-straight days, falling 7.8% (-$2.66) over that span. Shares are down $8.96 (-21.4%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!