Avery Dennison Earnings: Booking a Profit AGAIN

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S&P 500 (NYSE:SPY) component Avery Dennison Corporation (NYSE:AVY) reported its results for the second 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 fell to $64.2 million (62 cents per share) vs. $73.3 million (69 cents per share) a year earlier. This is a decline of 12.4% from the year-earlier quarter.

Revenue: Fell 11.2% to $1.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Avery Dennison Corporation beat the mean analyst estimate of 54 cents per share. Analysts were expecting revenue of $1.54 billion.

Quoting Management: “Second-quarter results were in line with our expectations, and we are on track for full-year earnings growth and free cash flow within the ranges of our guidance,” said Dean Scarborough, Avery Dennison chairman, president and CEO. “We continued to deliver on our commitment to return more cash to shareholders, repurchasing more than two million shares during the quarter. We are aggressively implementing the next phase of our restructuring initiative to help us deliver on our financial targets for double-digit earnings growth and higher returns,” Scarborough said. “Our near-term target is to achieve more than $100 million in annualized savings by mid-2013. The leaner cost structure that will result will enhance our overall competitive position and strengthen our ability to increase returns even in an uncertain economic environment.”

Key Stats:

Revenue has fallen for the last three quarters in a row. In the first quarter, revenue declined 10.6% to $1.48 billion while the figure fell 42.5% in the fourth quarter of the last fiscal year from the year earlier.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 45 cents versus a mean estimate of net income of 44 cents per share.

Net income has dropped 26% year-over-year on average across the last five quarters. Performance was hurt by an 80.6% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: The average estimate for the third quarter remains unchanged at 48 cents a share. In the past month, the average estimate for the fiscal year has fallen from $1.97 per share to $1.95.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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