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Avery Dennison (AVY) Tops Q2 Earnings, Raises 2016 View

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Avery Dennison Corporation (AVY - Free Report) is a global leader in labeling and packaging materials and solutions. Its applications and technologies are an integral part of products used across every major market and industry. Its products are sold under the Avery, Avery Dennison, Avery Graphics and Fasson brands.

Avery Dennison continues to focus on expanding in emerging markets and developing innovative new products to enable share gain and application growth. The Pressure Sensitive Materials and Retail Brandings segments are poised for long-term growth. However, near-term headwinds remain in the form of weak market demand in the U.S and Europe for the PSM segment. Moreover, given Avery Dennison’s significant exposure to international operations, currency volatility remains a concern.

Let’s have a quick look at the second-quarter 2016 earnings release of this Pasadena Calif. based manufacturer of pressure-sensitive materials.

Estimate Trend & Surprise History: You should note that the earnings estimate revisions for Avery Dennison depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at $1.01 for the second quarter.

Coming to earnings surprise history, Avery Dennison has a good track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 6.61%.

AVERY DENNISON Price and EPS Surprise

AVERY DENNISON Price and EPS Surprise | AVERY DENNISON Quote

Earnings: Avery Dennison beat on earnings by 8% in the second-quarter. Our consensus called for EPS of $1.01, and the company reported EPS of $1.09.

Revenue: It reported second-quarter revenues of $1,542 million, just came above the Zacks Consensus Estimate of $1,540 million.

Key Developments to Note: For 2016, Avery Dennison raised its adjusted earnings per share guidance to a new range of $3.80 to $3.95 from the previous range of $3.75 to $3.90 reflecting strong operating performance in the second quarter. The company remains confident about the consistent execution of strategies which will help in attaining its long-term goals.

Zacks Rank: Currently Avery Dennison has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.

Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.

Check back later for our full write up on this Avery Dennison earnings report later!

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