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S&P 500 (NYSE:SPY) component Avery Dennison Corporation (NYSE:AVY) reported net income above Wall Street’s expectations for the third quarter. 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.
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Avery Dennison Corporation Earnings Cheat Sheet
Results: Net income for Avery Dennison Corporation rose to $58.3 million (53 cents per share) vs. $49.8 million (47 cents per share) in the same quarter a year earlier. This marks a rise of 17.1% from the year-earlier quarter.
Revenue: Fell 0.8% to $1.49 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avery Dennison Corporation beat the mean analyst estimate of 45 cents per share. It fell short of the average revenue estimate of $1.54 billion.
Quoting Management: “In the third quarter, we delivered the strongest organic sales growth since first quarter 2011,” said Dean Scarborough, Avery Dennison chairman, president and CEO. “Continued top-line momentum in Pressure-sensitive Materials and a rebound in Retail Branding and Information Solutions’ core business, as well as accelerating adoption of RFID, drove better than expected earnings for the quarter. As a result, we raised our guidance for full-year earnings per share.”
Last quarter’s profit increase ends a four-quarter streak of year-over-year profit drops. In the second quarter, net income fell 12.4% from the year earlier, while the figure fell 2% in the first quarter, 80.6% in the fourth quarter of the last fiscal year and 22.4% in the third quarter of the last fiscal year.
The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the second quarter and by one cent in the first quarter.
Looking Forward: The average estimate for the fourth quarter remains unchanged at 49 cents a share. The average estimate for the fiscal year is $1.94 per share, down from $1.95 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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