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Avery Dennison Q4 Earnings Beat Estimates, Rise Y/Y on Higher Volumes

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Avery Dennison Corporation (AVY - Free Report) has delivered adjusted earnings of $2.38 per share in fourth-quarter 2024, beating the Zacks Consensus Estimate of $2.37. The bottom line increased 10% year over year.  

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Including one-time items, the company has reported earnings per share (EPS) of $2.16 compared with the year-ago quarter’s $1.77.

Avery Dennison’s Revenues & Margins Improve Y/Y in Q4

Total revenues moved up 3.6% year over year to $2.19 billion, aided by higher volumes in both segments. However, the top line missed the Zacks Consensus Estimate of $2.20 billion.

The cost of sales in the quarter improved 4.1% year over year to $1.58 billion. The gross profit rose 2.2% year over year to $609 million.

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

Marketing, general and administrative expenses were $329 million compared with $335 million in the year-ago quarter. The adjusted operating profit was around $280 million compared with the prior-year quarter’s $261 million. The adjusted operating margin was 12.8% compared with 12.4% in the prior-year quarter.

AVY’s Segments Deliver Y/Y Growth in Revenues & Profit

Revenues in the Materials Group segment increased 3.7% year over year to $1.47 billion in the reported quarter. The reported figure missed our estimate of $1.48 billion. On an organic basis, sales grew 3.7%. We predicted organic sales to rise 4.2%.

The segment’s adjusted operating profit increased 9.6% year over year to $217.5 million. Our estimate was $231.5 million.

Revenues in the Solutions Group moved up 3.2% year over year to $714 million. We estimated revenues of $735 million for this segment. On an organic basis, sales improved 2.6% year over year. Our model predicted a rise of 6.2%.

The segment’s adjusted operating income grew 0.9% year over year to $81 million. Our estimate was $74 million.

Avery Dennison’s Cash & Debt Position

The company returned $525 million in cash to shareholders through share repurchases and dividend payments in 2024. AVY repurchased 1.2 million shares throughout the year.

Avery Dennison ended 2024 with cash and cash equivalents of $329 million compared with $215 million at the end of the prior year.

The company’s long-term debt was $2.56 billion at the end of 2024, down from $2.62 billion at the end of 2023. Its net debt to adjusted EBITDA ratio was 2.0X.

AVY realized approximately $63 million in pre-tax savings from restructuring (net of transition costs) in 2024. The company also incurred pre-tax restructuring charges of around $42 million.

AVY’s 2024 Performance

Adjusted EPS increased 19% year over year to $9.43 in 2024 and topped the Zacks Consensus Estimate of $9.41. Including one-time items, EPS was $8.73 in 2024, up 41% from the $6.20 reported in 2023.

Total revenues improved 4.7% year over year to $8.76 billion. The top line figure missed the Zacks Consensus Estimate of $8.77 billion.

Avery Dennison’s 2025 Guidance

The company expects adjusted EPS between $9.80 and $10.20 for 2025.

AVY Stock’s Price Performance

Shares of Avery Dennison have lost 1.7% in the past year compared with the industry’s fall of 6.3%.

 

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Performance of Another Office Supplies Stock

Xerox Holdings Corporation (XRX - Free Report) came out with fourth-quarter 2024 earnings of 36 cents per share, missing the Zacks Consensus Estimate of 52 cents. The company reported earnings of 43 cents a year ago. 

XRX posted revenues of $1.61 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate of $1.59 billion. It posted revenues of $1.78 billion in the year-ago quarter.

Office Supplies Stock Awaiting Results

ACCO Brands Corporation (ACCO - Free Report) is expected to release its fourth-quarter 2024 results soon. The Zacks Consensus Estimate for ACCO’s earnings is pegged at 41 cents per share, indicating year-over-year growth of 5.1%.

The consensus estimate for the company’s top line is pegged at $455.1 million, implying a decrease of 6.9% from the prior-year reported figure. ACCO has a trailing four-quarter average surprise of 21.9%.

Avery Dennison’s Zacks Rank & Stock to Consider

Avery Dennison currently carries a Zacks Rank #4 (Sell).

A better-ranked stock from the Industrial Products sector is Graham Corporation (GHM - Free Report) . GHM sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Graham delivered an average trailing four-quarter earnings surprise of 101.9%. The Zacks Consensus Estimate for GHM’s 2025 earnings is pinned at $1.03 per share, which indicates a year-over-year surge of 145.2%. The company’s shares have skyrocketed 128.3% in a year.

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