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Avery Dennison (AVY) Q2 Earnings Beat, Revenues Rise Y/Y

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Avery Dennison Corporation (AVY - Free Report) has delivered adjusted earnings of $2.42 per share in second-quarter 2024, beating the Zacks Consensus Estimate of $2.25. The bottom line marked 26% year-over-year growth.

Including one-time items, the company has reported earnings per share (EPS) of $2.18 compared with the year-ago quarter’s $1.24.

Total revenues grew 6.9% year over year to $2.24 billion, beating the Zacks Consensus Estimate of $2.18 billion.
Cost of sales in the quarter grew 2.3% year over year to $1.57 billion. The gross profit improved 19.8% year over year to $663 million.

Marketing, general and administrative expenses were $374 million compared with the $320 million incurred in the year-ago quarter. The adjusted operating profit was around $289 million compared with the prior-year quarter’s $234 million. The adjusted operating margin was 12.9% in the quarter compared with the year-ago quarter’s 11.2%.

Avery Dennison Corporation Price, Consensus and EPS Surprise

 

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 4.8% year over year to $1.55  billion in the second quarter. The reported figure exceeded our estimate of $1.52 billion. On an organic basis, sales rose 5.6%. We predicted organic sales to fall 2.9%. The segment’s adjusted operating profit grew 22.3% year over year to $245 million.

Revenues in the Solutions Group were up 12% year over year to $689  million. We estimated revenues of $659 million for this segment. On an organic basis, sales grew 10.8%. Our model predicted a fall of 6.3%. The segment’s adjusted operating income increased 26.9% year over year to $69.8 million.

Financial Updates

The company returned $177 million in cash to shareholders through share repurchases and dividend payments in the first half of 2024. AVY repurchased 0.2 million shares throughout the first half.

Avery Dennison ended the quarter with cash and cash equivalents of $209 million compared with $217 million at the end of 2023. The company’s long-term debt was $2.05 billion at the end of the quarter under review, down from $2.91 billion at the end of the second quarter of 2023.

Guidance

Backed by a better-than-expected performance in the second quarter, the company updated its yearly outlook. Avery Dennison projects full-year adjusted EPS of $9.30-$9.50 compared with the prior stated $9.00-$9.50.

Price Performance

AVY shares have gained 28.3% in the past year compared with the industry’s growth of 27.7%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Office Supplies Stocks Awaiting Results

Xerox Holdings Corporation (XRX - Free Report) is scheduled to release its second-quarter 2024 results on Jul 25. The Zacks Consensus Estimate for XRX’s second-quarter 2024 earnings is pegged at 46 cents per share, suggesting year-over-year growth of 4.5%.

The Zacks Consensus Estimate for the company’s top line is pegged at $1.63 billion, indicating a decline of 7.1% from the prior-year figure. XRX has a trailing four-quarter average surprise of a negative 7.82%.

ACCO Brands Corporation (ACCO - Free Report) is expected to release its second-quarter 2024 results soon. The Zacks Consensus Estimate for ACCO Brands’ second-quarter 2024 earnings is pegged at 31 cents per share, suggesting a year-over-year fall of 18.4%.

The Zacks Consensus Estimate for the company’s top line is pegged at $453 million, implying a decrease of 8.3% from the prior-year reported figure. ACCO has a trailing four-quarter average surprise of 25.9%.

Another Stock to Consider

Avery Dennison currently carries a Zacks Rank #2 (Buy).

Another top-ranked stock from the Industrial Products sector is Intellicheck, Inc. (IDN - Free Report) , which has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Intellicheck’s 2024 earnings is pegged at 2 cents per share. The consensus estimate for 2024 earnings has been unchanged in the past 60 days. The company has a trailing four-quarter average earnings surprise of 28.9%. IDN shares have gained 17.4% in a year.

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