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Avery Dennison Earnings & Revenues Fall Short of Estimates in Q1

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Avery Dennison Corporation (AVY - Free Report) has delivered adjusted earnings of $2.30 per share in first-quarter 2025, missing the Zacks Consensus Estimate of $2.32. The bottom line marked a 0.4% year-over-year improvement. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Including one-time items, the company reported earnings per share (EPS) of $2.09 compared with the year-ago quarter’s $2.13.

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

Avery Dennison’s Revenues & Gross Profit Dip Y/Y in Q1

Total revenues slipped 0.1% year over year to $2.148 billion and missed the Zacks Consensus Estimate of $2.151 billion.
 
The cost of sales in the quarter inched up 0.5% year over year to $1.53 billion. The gross profit fell 1.7% year over year to $621.5 million.

Marketing, general and administrative expenses were $347 million compared with $365 million in the year-ago quarter. The adjusted operating profit was $274.5 million compared with the prior-year quarter’s $273.7 million. The adjusted operating margin was 12.8%, up from 12.7% in the year-ago quarter.

AVY’s Segmental Highlights

Revenues in the Materials Group segment decreased 1.1% year over year to $1.48 billion in the reported quarter. The reported figure missed our estimate of $1.49 billion. On an organic basis, sales moved up 1.2%. We predicted organic sales to rise 3.2%. The segment’s adjusted operating profit fell 4.2% year over year to $230 million.

Revenues in the Solutions Group rose 2% year over year to $668 million. We estimated revenues of $655 million for this segment. On an organic basis, sales improved 4.9%. Our model predicted a rise of 3.4%. The segment’s adjusted operating income increased 12% year over year to $68 million.

Avery Dennison’s Cash & Debt Position

The company returned $331 million in cash to shareholders through share repurchases and dividend payments in the first quarter of 2025. AVY repurchased 1.4 million shares throughout the quarter.

Avery Dennison ended the quarter with cash and cash equivalents of $196 million compared with $186 million at the end of the prior-year comparable quarter. The company’s long-term debt was $2.58 billion at the end of the quarter under review, up from $2.07 billion at the end of the first quarter of 2024.

AVY realized approximately $14 million in pre-tax savings from restructuring (net of transition costs) in the quarter. The company also incurred pre-tax restructuring charges of around $5 million.

AVY’s Guidance for Q2

The company expects adjusted EPS between $2.30 and $2.50 for second-quarter 2025.

Avery Dennison Stock’s Price Performance

AVY shares have lost 15.9% in the past year against the industry’s 20.7% growth.

 

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AVY’s Zacks Rank

Avery Dennison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Industrial Product Stocks Awaiting Results

AptarGroup, Inc. (ATR - Free Report) is scheduled to release first-quarter 2025 results on May 1. The Zacks Consensus Estimate for ATR’s first-quarter 2025 earnings is pegged at $1.16 per share, indicating a year-over-year decrease of 7.9%.

The consensus estimate for AptarGroup’s top line is pegged at $895.6 million, indicating a fall of 2.2% from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 9.3%.

Sonoco (SON - Free Report) , scheduled to release first-quarter 2025 results soon, has a trailing four-quarter average surprise of 1.9%. The Zacks Consensus Estimate for SON’s first-quarter 2025 earnings is pegged at $1.41 per share, implying year-over-year growth of 25.9%.

The consensus estimate for the company’s top line is pegged at $2.08 billion, indicating a rise of 26.9% from the prior-year figure.

Silgan Holdings (SLGN - Free Report) is scheduled to release its first-quarter 2025 results on April 30. The Zacks Consensus Estimate for Silgan’s first-quarter 2025 earnings is pegged at 78 cents per share, indicating a year-over-year rise of 13%.

The consensus estimate for Silgan’s top line is pegged at $1.47 billion, indicating a rise of 11.6% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.5%.

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