Financial Performance - 3Q24 reported EPS of $2.25, up 32%, and adjusted EPS of $2.33, up 9%[1] - 3Q24 net sales reached $2.2 billion, an increase of 4%, with organic sales growth of 4%[1] - Total net sales for Q3 2024 reached $2,183.4 million, a 4.1% increase compared to $2,098.3 million in Q3 2023[14] - Net income for Q3 2024 was $181.7 million, a 31% increase compared to $138.3 million in Q3 2023[14] - Net income per common share, assuming dilution, increased to $2.25 in Q3 2024 from $1.71 in Q3 2023, marking a 32% rise[14] - Operating income for Q3 2024 was $264.4 million, representing a 28% increase from $206.9 million in Q3 2023[14] - Adjusted net income for the three months ended September 28, 2024, was $188.4 million, compared to $172.3 million for the same period in 2023, reflecting a year-over-year increase of 9.5%[23] Segment Performance - Materials Group reported sales increased 3% to $1.5 billion, with an operating margin of 14.5%[3] - Solutions Group reported sales increased 7% to $686 million, with an operating margin of 9.7%[4] - The Materials Group reported net sales of $1,497.7 million, up 2.9% year-over-year, while the Solutions Group saw a 6.8% increase to $685.7 million[14] - Operating income for the Materials Group was reported at $217.8 million for Q3 2024, up from $176.5 million in Q3 2023, reflecting a margin increase from 12.1% to 14.5%[26] - The Solutions Group achieved an operating income of $66.5 million in Q3 2024, compared to $50.7 million in Q3 2023, with margins improving from 7.9% to 9.7%[26] Cash Flow and Capital Management - The company returned $315 million to shareholders through dividends and share repurchases in the first three quarters of 2024[5] - Net cash provided by operating activities increased to $587.6 million from $514.1 million, reflecting a 14.2% growth year-over-year[19] - Net cash used in investing activities decreased to $169.5 million from $344.2 million, indicating a 50.8% reduction[19] - Net cash used in financing activities increased to $419.8 million from $122.7 million, showing a significant rise in cash outflows[19] - Cash and cash equivalents as of September 28, 2024, were $212.7 million, slightly up from $209.9 million as of September 30, 2023[17] Guidance and Future Outlook - Full-year FY24 reported EPS guidance revised to $8.75 to $8.90, while adjusted EPS guidance raised to $9.35 to $9.50[1][8] - The company expects continued growth in net sales and operating income driven by strategic initiatives and market expansion efforts[22] Restructuring and Cost Management - Approximately $50 million in pre-tax savings realized from restructuring actions in the first three quarters of 2024[7] - The company incurred restructuring charges of $1.5 million in Q3 2024, compared to $29.4 million in Q3 2023, indicating a significant reduction in restructuring costs[26] Debt and Equity - The company's net debt to adjusted EBITDA ratio was 2.1x at the end of the third quarter[5] - The company reported a net debt of $2,946.2 million, with a net debt to adjusted EBITDA ratio of 2.1[29] - Shareholders' equity increased to $2,393.9 million from $2,063.6 million year-over-year[18] Tax and Expenses - The effective tax rate for the third quarter was reported at 24.1%[6] - The company’s adjusted tax rate was 26% for both the three and nine months ended September 28, 2024[23] - Stock-based compensation expenses rose to $24.2 million from $17.4 million, reflecting a 39.3% increase[19] - Total depreciation and amortization expenses were $234 million, with depreciation at $147.5 million and amortization at $86.5 million[19]

Core Viewpoint - Avery Dennison Corporation (AVY) is set to report its third-quarter 2024 results on October 23, with expectations of revenue growth and earnings increase compared to the previous year [1]. Financial Performance Expectations - The Zacks Consensus Estimate for AVY's third-quarter revenues is $2.18 billion, reflecting a 4.4% increase from the same period last year [1]. - The consensus estimate for earnings is $2.32 per share, indicating a year-over-year growth of 10.5% [1]. - The earnings estimate has remained unchanged over the past 60 days [1]. Earnings Surprise History - Avery Dennison has a history of beating Zacks Consensus Estimates, with an average surprise of 4% over the last four quarters [3]. Segment Performance Insights - The Materials Group segment is expected to see organic sales rise by 3.7% year-over-year, with projected revenues of $1.51 billion and an adjusted operating profit of $229.8 million, marking a 10.3% improvement [7]. - The Solutions Group segment is anticipated to grow organic sales by 5.8% year-over-year, with expected sales of $680 million and an operating profit of $70.5 million, indicating a 14.8% increase [8]. Stock Performance - Avery Dennison's shares have outperformed the industry, gaining 28.9% over the past year compared to the industry's growth of 23% [9].

Group 1 - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [2][3][4] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [2] - The Growth Score assesses a company's financial health and future growth potential through earnings and cash flow analysis, targeting growth investors [3] - The Momentum Score identifies stocks with favorable price trends, utilizing short-term price changes and earnings estimate adjustments to assist momentum investors [3] Group 3 - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive evaluation of stocks based on their weighted styles, aiding in identifying attractive investment opportunities [4] - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [5][6] Group 4 - Avery Dennison Corporation, rated 2 (Buy) on the Zacks Rank, has a VGM Score of B and a Value Style Score of B, indicating attractive valuation metrics such as a forward P/E ratio of 23.25 [8] - Recent earnings estimates for Avery Dennison have been revised upward, with the Zacks Consensus Estimate increasing by $0.02 to $9.46 per share, alongside an average earnings surprise of 4% [8]

Group 1 - Avery Dennison Corporation is a significant player in the labelling and packaging industry, valued at $17.6 billion [1] - The company is focusing on the future by enhancing its capabilities to digitally tag physical products, which is expected to add value to its offerings [1] Group 2 - The article emphasizes the importance of fundamental financial ratios and metrics for gaining clear insights into investment opportunities [1]

Avery Dennison Corporation (AVY) hosted its 2024 Investor Day on Wednesday. Let's discuss the key takeaways from the event. AVY’s shares gained 3.1% after the company stated that it is on track to meet its 2020-2025 long-term targets of more than 5% sales growth, adjusted EBITDA margin of more than 16% and around 10% adjusted EPS growth.Avery Dennison Adjusts Intelligent Labels’ OutlookAvery Dennison expects its Materials segment to be driven by several key factors. Attractive packaging will drive sales, wh ...

Avery Dennison (AVY) shares soared 3.1% in the last trading session to close at $215.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.6% loss over the past four weeks.Shares of Avery Dennison have gained since the company hosted its investor day on Wednesday. The company announced that it is on track to meet its 2020-2025 financial targets, driven by sales growth, strong margins, and solid capital efficiency.The company is e ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Gr ...

Avery Dennison Corporation (NYSE:AVY) Q2 2024 Results Conference Call July 23, 2024 12:00 PM ET Company Participants John Eble - Vice President, Finance and Investor Relations Deon Stander - President and Chief Executive Officer Gregory Lovins - Senior Vice President and Chief Financial Officer Conference Call Participants John McNulty - BMO Capital Markets Ghansham Panjabi - Baird George Staphos - Bank of America Michael Roxland - Truist Securities Josh Spector - UBS Matt Roberts - Raymond James Jeff Zekau ...

Avery Dennison Corporation (AVY) 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 billi ...