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.
Avery Dennison Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 26.79% to $0.71 in the quarter versus EPS of $0.56 in the year-earlier quarter.
Revenue: Rose 1.31% to $1.55 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avery Dennison Corporation reported adjusted EPS income of $0.71 per share. By that measure, the company beat the mean analyst estimate of $0.7. It beat the average revenue estimate of $1.54 billion.
Quoting Management: “I’m pleased to report another quarter of strong earnings growth, driven by restructuring and other productivity actions we initiated last year,” said Dean Scarborough, Avery Dennison chairman, president and CEO. “Pressure-sensitive Materials continued to benefit from its leadership position in emerging markets, growth through innovation, and significant productivity gains. Retail Branding and Information Solutions delivered its fourth consecutive quarter of strong sales growth with continued margin expansion in the first half.
“We passed two significant milestones, delivering $105 million of restructuring savings and completing the sale of Office and Consumer Products and Designed and Engineered Solutions,” Scarborough added. “We are committed to achieving our earnings and free cash flow targets, and to returning the vast majority of that cash to shareholders. In the first half, we distributed over $200 million to shareholders through dividends and the repurchase of 3.5 million shares.”
Key Stats (on next page)…
Revenue increased 3.56% from $1.5 billion in the previous quarter. EPS increased 20.34% from $0.59 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 $0.64 and has not changed. For the current year, the average estimate has moved up from a profit of $2.56 to a profit of $2.58 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)