Avery Dennison Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Avery Dennison Corporation (NYSE:AVY) will unveil its latest earnings on Wednesday, October 26, 2011. 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 59 cents per share, a decline of 4.8% 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 71 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 61 cents during the last month. Analysts are projecting profit to rise by 20% versus last year to $2.52.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 3 cents, reporting net income of 78 cents per share against a mean estimate of profit of 75 cents. In the first quarter, the company exceeded forecasts by 4 cents with net income of 51 cents versus a mean estimate of profit of 47 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 1.8% in revenue from the year-earlier quarter to $1.67 billion.

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

A Look Back: In the second quarter, profit fell 12.5% to $73.3 million (69 cents a share) from $83.8 million (78 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 2.7% to $1.73 billion from $1.68 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 6.7% in the first quarter from the year earlier, climbed 7.6% in the fourth quarter of the last fiscal year from the year-ago quarter and 5.9% in the third quarter of the last fiscal year.

The company has seen net income fall in each of the last two quarters. Net income dropped 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 July 27, 2011 to October 20, 2011, the stock price had fallen $5.82 (-18.6%) from $31.37 to $25.55. 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% (+$4.66) over that span. It saw one of its worst periods between April 6, 2011 and April 13, 2011 when shares fell for six-straight days, falling 3.5% (-$1.47) over that span. Shares are down $15.90 (-38.4%) year to date.

(Source: Xignite Financials)

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