Avery Dennison Beats Q3 Earnings Estimates, Raises FY24 View

Avery Dennison Corporation AVY has delivered third-quarter 2024 adjusted earnings of $2.33 per share , which beating the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.Including one-time items, the company reported earnings per share (EPS) of $2.25 compared with the year-ago quarter’s $1.71.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Avery Dennison’s Revenues & Margins Improve Y/Y in Q3Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.Avery Dennison Corporation Price, Consensus and EPS Surprise Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation QuoteThe cost of sales grew 2.9% year over year to $1.56 billion. The gross profit improved 7% year over year to $627 million.Marketing, general and administrative expenses were $347 million compared with the $325 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 the year-ago quarter’s 12.4%.AVY’s Segments Deliver Y/Y Growth in Revenues & ProfitRevenues in the Materials Group segment increased 3% year over year to around $1.5 billion . The reported figure came in line with our estimate. On an organic basis, sales rose 3.6%. We predicted organic sales to rise 3.7%. The segment’s adjusted operating profit grew 3% year over year to $222 million. Our estimate was  $230 million.Revenues in the Solutions Group were up 7% year over year to $686 million. We estimated revenues of $680 million for this segment. On an organic basis, sales grew 6%. Our model predicted 5.8% growth. The segment’s adjusted operating income increased 26% year over year to $77 million. Our estimate was $71 million.Avery Dennison’s Cash & Debt PositionThe company returned $315 million in cash to shareholders through share repurchases and dividend payments in the first nine-month period of 2024. AVY repurchased 0.5 million shares throughout the period.Avery Dennison ended the quarter with cash and cash equivalents of $213 million compared with $210 million at the end of the year-ago quarter. The company’s long-term debt was $2.04 billion at the end of the quarter, down from $2.6 billion at the end of the third quarter of 2023.AVY Revised Guidance for 2024The company expects reported sales growth to be in the range of 5.0-5.5% (previously 4.5-5.5%). This includes a 0.5% contribution from acquisitions. Organic sales growth is envisioned in the band of 4.5-5.0%. AVY had previously provided a range of 4.0-5.0%.Avery Dennison now projects full-year adjusted EPS to be in the range of $9.35-$9.50 compared with the prior stated 9.30-$9.50. The mid point of the guidance projects 19% growth from adjusted EPS of $7.90 in 2023.Avery Dennison Stock’s Price PerformanceAVY’s shares have gained 25% in the past year compared with the industry’s 17.1% growth.Image Source: Zacks Investment ResearchOffice Supplies Stocks Awaiting ResultsXerox Holdings Corporation XRX is scheduled to release its third-quarter results on Oct. 29. The Zacks Consensus Estimate for XRX’s earnings is pegged at 53 cents per share, indicating year-over-year growth of 15.2%.The consensus estimate for the company’s top line is pegged at $1.60 billion, indicating a decline of 3.4% from the prior-year figure. XRX has a trailing four-quarter average surprise of a negative 25.4%.ACCO Brands Corporation ACCO is expected to release its third-quarter 2024 results on Oct. 31. The Zacks Consensus Estimate for ACCO Brands’ earnings is pegged at 23 cents per share, indicating a year-over-year fall of 4%.The consensus estimate for the company’s top line is pegged at $418 million, implying a decrease of 6.7% from the prior-year figure. ACCO has a trailing four-quarter average surprise of 22.97%.AVY’s Zacks Rank & a Stock to ConsiderAvery Dennison currently carries a Zacks Rank #3 (Hold).A better-ranked stock from the Industrial Products sector is Parker-Hannifin Corporation PH. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2025 earnings is pegged at $26.68 per share. The company has a trailing four-quarter average earnings surprise of 11.2%. PH’s shares have gained 76.4% in a year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Xerox Holdings Corporation (XRX): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks