We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Avery Dennison's (AVY) Q4 Earnings Beat, Sales Lag Estimates
Read MoreHide Full Article
Avery Dennison Corporation (AVY - Free Report) reported adjusted earnings of $1.73 per share in fourth-quarter 2019, surpassing the Zacks Consensus Estimate of $1.68. The figure also increased around 13.8% year over year.
Including one-time items, the company posted net income of $1.92 per share compared with the year-ago quarter’s earnings per share (EPS) of $1.11.
Total revenues inched up nearly 0.2% year over year to $1,772.9 million. The top-line figure, however, missed the Zacks Consensus Estimate of $1,784 million. Organic sales growth came in at 2.1% in the reported quarter.
Cost of sales in the quarter edged down nearly 0.7% year over year to $1,288.2 million. Gross profit rose 2.8% year over year to $484.7 million. Gross margin increased to 27.3% from the prior-year quarter’s 26.6%.
Marketing, general and administrative expenses totaled $273.1 million compared with the $274.5 million incurred in the year-ago quarter. Adjusted operating profit came in at $212 million, up from the $197 million recorded in the prior-year quarter. Adjusted operating margin rose to 11.9% from the year-earlier quarter level of 11.1%.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Revenues in the Label and Graphic Materials segment dipped 0.4% year over year to $1,176.2 million. On an organic basis, sales inched up 1.5%. Adjusted operating profit was up 2.6% year on year to $156 million.
Revenues in the Retail Branding and Information Solutions segment rose 3.6% year over year to $426.9 million. On an organic basis, sales were up 5.2%, as consistent strength in RFID and external embellishments. The segment’s adjusted operating income increased 15.5% to $58.1 million.
Net sales in the Industrial and Healthcare Materials segment amounted to $169.8 million, indicating a year-over-year decline of 3.1%. On an organic basis, sales were down 1.1%. The downside resulted from a mid-single digit decline in healthcare categories, partly offset by a low-single digit increase in industrial categories. The segment reported adjusted operating income of $17.4 million compared with the prior-year quarter’s $16.8 million.
Financial Updates
Avery Dennison had cash and cash equivalents of around $254 million at the end of 2019, up from $232 million at the end of 2018. During 2019 the company generated $746.5 million in cash from operating activities compared with the $457.9 million reported last year.
During the fourth quarter, Avery Dennison repurchased 0.3 million shares for a total cost of $33 million. In 2019, the company repurchased 2.2 million shares for a total cost of $238 million. The company’s share count declined 1.5 million for the year. In 2019, the company returned $427 million cash to shareholders through share repurchases and dividends.
The company’s long-term debt decreased to $1,499.3 million as of Dec 28, 2019 compared with $1,771.6 million as of Dec 29, 2018.
The company’s board has announced a quarterly cash dividend of 58 cents per share. The dividend is payable on March 18, to shareholders of record on Mar 4, 2020.
Cost-Reduction Activities
Avery Dennison realized around $18 million in pre-tax savings from restructuring in the December-end quarter. The company incurred pre-tax restructuring charges of nearly $29 million. For the full year, the company realized around $53 million and incurred pre-tax restructuring charges of nearly $50 million.
2019 Performance
Adjusted earnings per share for 2019 came in at $6.60, marking an improvement of 9% from the prior year. Earnings also surpassed the Zacks Consensus Estimate of $6.55. Including one-time items, earnings summed $3.57, down 32% year over year.
In 2019, revenues came in at $7.07 billion, reflecting a year-over-year decline of 1.2%. The top-line figure came in line with the Zacks Consensus Estimate. Organic sales growth was 2% during the year.
Guidance
For 2020, Avery Dennison expects adjusted EPS of $6.90-$7.15. Including restructuring charges and other items, the company predicts EPS to be $6.75-$7.
Price Performance
Shares of Avery Dennison have rallied 26.4% in the past year compared with the industry’s 27.3% rise.
Zacks Rank and Stocks to Consider
Avery Dennison currently carries a Zacks Rank #3 (Hold).
DXP Enterprises has an estimated earnings growth rate of 10.5% for the ongoing year. In a year’s time, the stock has appreciated 23.1%.
SPX FLOW has a projected earnings growth rate of 9.1% for 2020. The company’s shares have gained 41.6% in the past year.
Cintas has an expected earnings growth rate of 15.6% for the current year. The stock has surged 57.8% over the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Avery Dennison's (AVY) Q4 Earnings Beat, Sales Lag Estimates
Avery Dennison Corporation (AVY - Free Report) reported adjusted earnings of $1.73 per share in fourth-quarter 2019, surpassing the Zacks Consensus Estimate of $1.68. The figure also increased around 13.8% year over year.
Including one-time items, the company posted net income of $1.92 per share compared with the year-ago quarter’s earnings per share (EPS) of $1.11.
Total revenues inched up nearly 0.2% year over year to $1,772.9 million. The top-line figure, however, missed the Zacks Consensus Estimate of $1,784 million. Organic sales growth came in at 2.1% in the reported quarter.
Cost of sales in the quarter edged down nearly 0.7% year over year to $1,288.2 million. Gross profit rose 2.8% year over year to $484.7 million. Gross margin increased to 27.3% from the prior-year quarter’s 26.6%.
Marketing, general and administrative expenses totaled $273.1 million compared with the $274.5 million incurred in the year-ago quarter. Adjusted operating profit came in at $212 million, up from the $197 million recorded in the prior-year quarter. Adjusted operating margin rose to 11.9% from the year-earlier quarter level of 11.1%.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote
Segment Highlights
Revenues in the Label and Graphic Materials segment dipped 0.4% year over year to $1,176.2 million. On an organic basis, sales inched up 1.5%. Adjusted operating profit was up 2.6% year on year to $156 million.
Revenues in the Retail Branding and Information Solutions segment rose 3.6% year over year to $426.9 million. On an organic basis, sales were up 5.2%, as consistent strength in RFID and external embellishments. The segment’s adjusted operating income increased 15.5% to $58.1 million.
Net sales in the Industrial and Healthcare Materials segment amounted to $169.8 million, indicating a year-over-year decline of 3.1%. On an organic basis, sales were down 1.1%. The downside resulted from a mid-single digit decline in healthcare categories, partly offset by a low-single digit increase in industrial categories. The segment reported adjusted operating income of $17.4 million compared with the prior-year quarter’s $16.8 million.
Financial Updates
Avery Dennison had cash and cash equivalents of around $254 million at the end of 2019, up from $232 million at the end of 2018. During 2019 the company generated $746.5 million in cash from operating activities compared with the $457.9 million reported last year.
During the fourth quarter, Avery Dennison repurchased 0.3 million shares for a total cost of $33 million. In 2019, the company repurchased 2.2 million shares for a total cost of $238 million. The company’s share count declined 1.5 million for the year. In 2019, the company returned $427 million cash to shareholders through share repurchases and dividends.
The company’s long-term debt decreased to $1,499.3 million as of Dec 28, 2019 compared with $1,771.6 million as of Dec 29, 2018.
The company’s board has announced a quarterly cash dividend of 58 cents per share. The dividend is payable on March 18, to shareholders of record on Mar 4, 2020.
Cost-Reduction Activities
Avery Dennison realized around $18 million in pre-tax savings from restructuring in the December-end quarter. The company incurred pre-tax restructuring charges of nearly $29 million. For the full year, the company realized around $53 million and incurred pre-tax restructuring charges of nearly $50 million.
2019 Performance
Adjusted earnings per share for 2019 came in at $6.60, marking an improvement of 9% from the prior year. Earnings also surpassed the Zacks Consensus Estimate of $6.55. Including one-time items, earnings summed $3.57, down 32% year over year.
In 2019, revenues came in at $7.07 billion, reflecting a year-over-year decline of 1.2%. The top-line figure came in line with the Zacks Consensus Estimate. Organic sales growth was 2% during the year.
Guidance
For 2020, Avery Dennison expects adjusted EPS of $6.90-$7.15. Including restructuring charges and other items, the company predicts EPS to be $6.75-$7.
Price Performance
Shares of Avery Dennison have rallied 26.4% in the past year compared with the industry’s 27.3% rise.
Zacks Rank and Stocks to Consider
Avery Dennison currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are DXP Enterprises, Inc. (DXPE - Free Report) , SPX FLOW, Inc. (FLOW - Free Report) and Cintas Corporation (CTAS - Free Report) . While DXP Enterprises and SPX FLOW flaunts a Zacks Rank #1 (Strong Buy), Cintas carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
DXP Enterprises has an estimated earnings growth rate of 10.5% for the ongoing year. In a year’s time, the stock has appreciated 23.1%.
SPX FLOW has a projected earnings growth rate of 9.1% for 2020. The company’s shares have gained 41.6% in the past year.
Cintas has an expected earnings growth rate of 15.6% for the current year. The stock has surged 57.8% over the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>