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Avery Dennison (AVY) Beats on Q1 Earnings, Raises Outlook

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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 first-quarter 2017 earnings release of this Pasadena Calif. based manufacturer of pressure-sensitive materials.

Estimate Trend & Surprise History: Investors should note that the earnings estimate revisions for Avery Dennison have moved north ahead of the earnings release. The Zacks Consensus Estimate has gone up 1% over the last 30 days and currently stands at $1.04 for the first 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 6.17%.

Earnings: Avery Dennison reported EPS of $1.11 in the reported quarter, which beat the Zacks Consensus Estimate of $1.04. Investors should note that these figures take out special items.

Revenue: It reported first-quarter revenues of $1,572 million, ahead of the Zacks Consensus Estimate of $1,530 million.

Key Developments to Note: For 2017, Avery Dennison raised its adjusted earnings per share guidance range to $4.50 to $4.65 from the prior band 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 #2 (Buy). 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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