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Avery Dennison (AVY) Tops Q4 Earnings & Sales

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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. Further, Avery Dennison will gain from constant focus on productivity and capital discipline. Continued focus on execution of strategies, cost control and share repurchases will also drive results.

Let’s have a quick look at the fourth-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 have remained stable prior to the earnings release. The Zacks Consensus Estimate currently stands at 93 cents for the fourth quarter.

Coming to earnings surprise history, Avery Dennison has an impressive track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 6.80%.

Earnings: Avery Dennison announced its preliminary results for the fourth quarter 2016. The company reported EPS of 99 cents in the reported quarter, which beat the Zacks Consensus Estimate of 93 cents. Investors should note that these figures take out special items.

Revenue: It reported fourth-quarter revenues of $1,550.8 million, ahead of the Zacks Consensus Estimate of $1,501 million.

Key Developments to Note: For 2017, Avery Dennison expects its adjusted earnings per share will be in the range of $4.30 to $4.50. The company remains confident about the consistent execution of strategies that continues to enhance its competitive advantage, while driving profitable growth and improving returns.

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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