The 10-second takeaway
For the quarter ended March 30 (Q1), Avery Dennison missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins expanded across the board.
Avery Dennison logged revenue of $1.50 billion. The five analysts polled by S&P Capital IQ wanted to see revenue of $1.53 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.59. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. Non-GAAP EPS of $0.59 for Q1 were 31% higher than the prior-year quarter's $0.45 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.57 for Q1 were 36% higher than the prior-year quarter's $0.42 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.8%, 70 basis points better than the prior-year quarter. Operating margin was 6.7%, 60 basis points better than the prior-year quarter. Net margin was 3.9%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.58 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $6.24 billion. The average EPS estimate is $2.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 105 members out of 131 rating the stock outperform, and 26 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Avery Dennison a green thumbs-up, and five 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 $39.71.
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