Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: The label business fell flat in the fourth quarter, sending shares of Avery Dennison
So what: Revenue in the fourth quarter was down slightly to $1.45 billion, but it fell well short of the $1.59 billion analysts had expected. The bottom line looked like a misprint with earnings falling 81% to $22.1 million for the quarter. Earnings per share were $0.21, less than half of the $0.46 analysts had expected.
Now what: There's not really a good way to paint this one, except to be happy the stock hasn't fallen further. The company did increase its dividend to $0.27 per share, but I would rather see that along with improving operating conditions. I have to sell this report today and won't be jumping in until the business stops its recent streak of missing earnings expectations by a wide margin.
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