Yahoo Finance Avery Dennison (AVY) Q1 Earnings Beat, Revenues Rise Y/Y
Avery Dennison Corporation AVY has delivered adjusted earnings of $2.29 per share in first-quarter 2024, surpassing the Zacks Consensus Estimate of $2.15. The bottom line marked a 35% year-over-year improvement, driven by higher volume and productivity gains.
Including one-time items, the company reported earnings per share (EPS) of $2.13 compared with the year-ago quarter’s $1.49 per share.
Total revenues increased 4.2% year over year to $2.15 billion, surpassing the Zacks Consensus Estimate of $2.14 billion.
The cost of sales in the quarter dipped 0.2% year over year to $1.52 billion. The gross profit improved 16.6% year over year to $632 million.
Marketing, general and administrative expenses were $365 million compared with the $334 million incurred in the year-ago quarter. The adjusted operating profit was around $274 million compared with the prior-year quarter’s $208 million. The adjusted operating margin was 12.7%, a 260-basis-point expansion from 10.1% in the year-ago quarter.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote
Segmental Highlights
Revenues in the Materials Group segment increased 2.5% year over year to $1.5 billion in the reported quarter. The reported figure surpassed our estimate of $1.48 billion. On an organic basis, sales moved up 1.9%. We predicted organic sales to rise 1.7%. The segment’s adjusted operating profit rose 37.6% year over year to $241 million.
Revenues in the Solutions Group rose 8.3% year over year to $655 million. We estimated revenues of $661 million for this segment. On an organic basis, sales improved 5.8%. Our model predicted a rise of 7.6%. The segment’s adjusted operating income increased 10.5% year over year to $61 million.
Financial Updates
The company returned $81 million in cash to shareholders through share repurchases and dividend payments in the first quarter of 2024. AVY repurchased 0.1 million shares throughout the quarter.
Avery Dennison ended the quarter with cash and cash equivalents of $186 million compared with $351 million at the end of the prior-year comparable quarter. The company’s long-term debt was $2.07 billion at the end of the quarter under review, down from $2.91 billion at the end of the first quarter of 2023. The company’s net debt to adjusted EBITDA ratio was 2.3.
AVY realized approximately $19 million in pre-tax savings from restructuring (net of transition costs) in the quarter. The company also incurred pre-tax restructuring charges of around $6 million.
Guidance for 2024
Avery Dennison continues to expect adjusted EPS between $9.00 and $9.50 for 2024.
Price Performance
AVY shares have gained 25.8% in the past year compared with the industry’s 29.7% growth.
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Zacks Rank & Stocks to Consider
Avery Dennison currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies AIT, Chart Industries, Inc. GTLS and Cadre Holdings, Inc. CDRE. AIT currently sports a Zacks Rank #1 (Strong Buy), and GTLS and CDRE carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.49 per share, which indicates year-over-year growth of 7.8%. Estimates have moved north by 1% in the past 60 days. The company’s shares have gained 35.4% in the past year.
The Zacks Consensus Estimate for Chart Industries’ 2024 earnings is pegged at $11.98 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 93.6%. The company has a trailing four-quarter average earnings surprise of 75.9%. GTLS shares have gained 12.2% in the past year.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.18 per share. The consensus estimate for 2024 earnings has moved 7% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 53.1% in the past year.
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