Avery Dennison Earnings: Accelerates Past Estimates, Stock Surges
Avery Dennison Corporation (NYSE:AVY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.65%.
Avery Dennison Corporation Earnings Cheat Sheet
Results: Net income increased 221.62% to $71.4 million (54 cents per diluted share) in the quarter versus a net gain of $22.2 million in the year-earlier quarter.
Revenue: Rose 62.47% to $1.53 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avery Dennison Corporation reported adjusted net income of 54 cents per share. By that measure, the company beat the mean analyst estimate of $0.49. It beat the average revenue estimate of $1.47 billion.
Quoting Management: “Avery Dennison delivered strong earnings improvement in 2012,” said Dean Scarborough, Avery Dennison chairman, president and CEO. “Both Pressure-sensitive Materials and Retail Branding and Information Solutions delivered solid sales growth and expanded margins, and we returned $346 million of cash to shareholders through share repurchases and an increased dividend…
…We also took actions that position us well for significant profit growth in 2013, even in a soft economic environment,” Scarborough said. “We remain committed to delivering on our long-term goals, including double-digit earnings growth and higher returns.”
Revenue increased 2.84% from $1.49 billion in the previous quarter. Net income increased 22.47% from $58.3 million in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.55 and has not changed. For the current year, the average estimate has moved down from a profit of $2.02 to a profit of $2.01 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)