The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Avery Dennison missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Avery Dennison recorded revenue of $1.45 billion. The four analysts polled by S&P Capital IQ predicted a top line of $1.60 billion. Sales were 11% lower than the prior-year quarter's $1.64 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.39. The six earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share on the same basis. GAAP EPS of $0.21 for Q4 were 81% lower than the prior-year quarter's $1.06 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 230 basis points worse than the prior-year quarter. Operating margin was 4.9%, 100 basis points worse than the prior-year quarter. Net margin was 1.5%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.62 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $6.80 billion. The average EPS estimate is $2.70.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avery Dennison is outperform, with an average price target of $31.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.