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Avery Dennison posts strong first quarter, beats analyst estimates

EditorRachael Rajan
Published 04/24/2024, 07:36 AM
© Reuters.

MENTOR, Ohio - Avery Dennison Corporation (NYSE:AVY) has reported a robust start to the fiscal year 2024, with first-quarter adjusted earnings per share (EPS) of $2.29, surpassing analyst expectations by $0.14. The company's net sales reached $2.15 billion, slightly above the consensus estimate of $2.14 billion, marking a 4% increase compared to the same quarter last year.

President and CEO Deon Stander attributed the strong performance to higher volume and productivity gains, particularly in the Materials Group, which saw significant volume growth and margin expansion. The Solutions Group also reported strong top-line growth, driven by high-value categories. Despite apparel imports remaining below demand, the company anticipates normalization in the apparel industry by mid-2024.

Looking ahead, Avery Dennison has revised its full-year 2024 reported EPS guidance to a range of $8.60 to $9.10. The adjusted EPS guidance remains unchanged at $9.00 to $9.50. When compared to the analyst consensus of $9.31, the midpoint of the company's guidance range ($9.25) is slightly below expectations.

The company's balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 2.3x at the end of the first quarter. Avery Dennison continues to return value to shareholders, having repurchased 0.1 million shares for $16 million and reduced the share count by 0.3 million compared to last year.

Stander expressed confidence in the company's strategies for long-term value creation, balancing profitable growth with capital discipline. "We are off to a strong start to the year. In the first quarter, we delivered significant earnings growth, driven by higher volume and productivity gains," said Stander, highlighting the team's resilience and commitment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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