The 10-second takeaway
For the quarter ended March 31 (Q1), Avery Dennison met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share was unchanged.
Gross margins contracted, operating margins improved, net margins expanded.
Avery Dennison chalked up revenue of $1.48 billion. The two analysts polled by S&P Capital IQ anticipated revenue of $1.49 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $1.53 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The five earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. GAAP EPS of $0.42 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.1%, 10 basis points worse than the prior-year quarter. Operating margin was 6.1%, 60 basis points better than the prior-year quarter. Net margin was 3.0%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $6.02 billion. The average EPS estimate is $1.96.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 103 members out of 131 rating the stock outperform, and 28 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Avery Dennison a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avery Dennison is hold, with an average price target of $30.80.
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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.