Core Insights - Avery Dennison reported $2.15 billion in revenue for Q1 2025, reflecting a year-over-year decline of 0.1% and an EPS of $2.30, slightly up from $2.29 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by -0.11%, while the EPS also missed the consensus estimate by -0.86% [1] Financial Performance Metrics - Net Sales for the Solutions Group reached $668.20 million, exceeding the average estimate of $665.75 million, marking a year-over-year increase of +2.1% [4] - Net Sales for the Materials Group totaled $1.48 billion, slightly above the average estimate of $1.47 billion, but showed a year-over-year decline of -1.1% [4] - Adjusted Operating Income for the Materials Group was $230.30 million, slightly below the average estimate of $230.80 million [4] - Adjusted Operating Income for Corporate expenses was reported at -$24 million, better than the average estimate of -$25.52 million [4] - Adjusted Operating Income for the Solutions Group was $68.20 million, surpassing the average estimate of $62.56 million [4] Stock Performance - Avery Dennison's shares have returned -0.5% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Avery Dennison reported quarterly earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.32 per share, representing an earnings surprise of -0.86% [1] - The company posted revenues of $2.15 billion for the quarter, also missing the Zacks Consensus Estimate by 0.11%, with year-ago revenues remaining the same at $2.15 billion [2] - Over the last four quarters, Avery Dennison has surpassed consensus EPS estimates three times and topped revenue estimates only once [2] Stock Movement and Outlook - Avery Dennison shares have declined approximately 6.6% since the beginning of the year, while the S&P 500 has decreased by 10.1% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.55 on revenues of $2.25 billion, and for the current fiscal year, it is $9.87 on revenues of $8.9 billion [7] Industry Context - The Containers - Paper and Packaging industry, to which Avery Dennison belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Avery Dennison's stock may be influenced by the overall outlook for the industry [8]

Financial Performance - Reported EPS for Q1 2025 was $2.09, with adjusted EPS of $2.30, reflecting a 0.4% increase and approximately 4% increase excluding currency effects[5]. - Net sales for Q1 2025 totaled $2.1 billion, a slight decrease of 0.1%, while organic sales increased by 2.3%[5]. - Net income for the three months ended March 29, 2025, was $166.3 million, down from $172.4 million in the same period last year, representing a decrease of 6.0%[29]. - Adjusted net income for the first quarter of 2025 was $182.6 million, down from $185.1 million in the first quarter of 2024, a decrease of 0.7%[49]. - The company’s adjusted net income per common share for the first quarter of 2025 was $2.30, compared to $2.29 in the same period last year, reflecting a slight increase of 0.4%[53]. Sales and Revenue Breakdown - The Materials Group reported sales of $1.5 billion, down 1.1%, but organic sales increased by 1.2%[8]. - The Solutions Group achieved reported sales of $668 million, up 2.0%, with organic sales growth of 4.9%[8]. - Total net sales for the first quarter of 2025 were $2,148.3 million, a slight decrease of 0.2% compared to $2,151.3 million in the first quarter of 2024[57]. - The reported net sales change for the total company in Q1 2025 was a slight decline of 0.1%, with the Materials Group experiencing a decrease of 1.1% and the Solutions Group showing an increase of 2.0%[63]. - Organic sales change (non-GAAP) for the total company in Q1 2025 was 2.3%, with the Materials Group at 1.2% and the Solutions Group at 4.9%[63]. Operating Performance - Adjusted operating income for the first quarter of 2025 was $274.5 million, compared to $273.7 million in the first quarter of 2024, indicating a slight increase of 0.3%[48]. - Adjusted operating income for the Materials Group in Q1 2025 was $230.3 million, down from $240.5 million in Q1 2024, reflecting a decrease of 4.9%[58]. - Adjusted EBITDA for the first quarter of 2025 was $352.4 million, up from $351.0 million in the first quarter of 2024, reflecting a growth of 0.4%[48]. - Adjusted EBITDA for the Solutions Group increased to $114.6 million in Q1 2025, compared to $105.4 million in Q1 2024, representing an increase of 10.8%[59]. - Adjusted EBITDA for the total company in Q1 2025 was $352.4 million, a decrease from $367.4 million in Q2 2024[61]. Shareholder Returns and Financial Position - The company returned $331 million to shareholders through share repurchases and dividends, repurchasing 1.4 million shares at a cost of $262 million[9]. - The net debt to adjusted EBITDA ratio was 2.3x at the end of Q1 2025, indicating a strong balance sheet[10]. - Total debt as of Q1 2025 was $3,459.1 million, with net debt standing at $3,263.2 million after accounting for cash and cash equivalents of $195.9 million[61]. - The net debt to adjusted EBITDA ratio for the last twelve months (LTM) was 2.3, indicating a stable leverage position[61]. Guidance and Future Outlook - The company expects Q2 2025 reported EPS guidance to be between $2.25 and $2.45, with adjusted EPS guidance of $2.30 to $2.50[5][13]. - Approximately $14 million in pre-tax savings were realized from restructuring actions during Q1 2025[12]. - The company plans to continue focusing on market expansion and new product development to drive future growth[60]. Tax and Cash Flow - The effective tax rate for Q1 2025 was reported at 26.7%, with an adjusted tax rate of 26.0%[11]. - Cash and cash equivalents at the end of the period were $195.9 million, an increase from $185.7 million at the end of the previous year[30]. - The company reported a net cash used in operating activities of $(16.3) million for the first quarter of 2025, compared to $119.8 million provided in the same period of 2024[55]. Current Assets and Liabilities - Total current assets increased to $3,030.4 million in 2025 from $2,886.8 million in 2024, reflecting a growth of 4.9%[27]. - Total current liabilities decreased to $2,952.8 million in 2025 from $3,308.2 million in 2024, a reduction of 10.7%[27].

Core Viewpoint - Avery Dennison Corporation (AVY) is expected to report first-quarter 2025 results on April 23, 2025, with a revenue estimate of $2.14 billion, reflecting a 0.4% decrease year-over-year, while earnings per share (EPS) is estimated at $2.32, indicating a 1.3% growth year-over-year [1]. Revenue and Earnings Estimates - The consensus estimate for AVY's first-quarter revenues is $2.14 billion, down 0.4% from the previous year [1]. - The earnings estimate for the first quarter is $2.32 per share, showing a year-over-year growth of 1.3% [1]. - The earnings estimates have been revised downwards over the past 60 days, with a current estimate of $2.32 compared to $2.33 from 7 days ago [1][6]. Earnings Surprise History - Avery Dennison has consistently beaten the Zacks Consensus Estimates in the last four quarters, with an average surprise of 3.7% [2]. - The reported earnings for the last four quarters were $2.38, $2.33, $2.42, and $2.29, with respective surprises of 0.42%, 0.43%, 7.56%, and 6.51% [3]. Segment Performance Expectations - The Materials Group segment is expected to see revenues dip by 0.6% year-over-year to $1.48 billion, with an adjusted operating profit forecasted at $263 million, reflecting a 4.5% year-over-year improvement [8]. - The Solutions Group segment is projected to generate revenues of $655 million, a slight increase of 0.1% from the prior year, with an operating profit estimate of $57 million, indicating a 0.8% increase year-over-year [9][10]. - Factors influencing performance include improved volumes in both segments, but higher costs for raw materials, labor, and freight are expected to impact margins [7]. Stock Performance - Avery Dennison's stock has decreased by 18.3% over the past year, compared to a 22.5% decline in the industry [11].

Company Performance - Avery Dennison Corporation (NYSE: AVY) reported a 19% growth in EPS for 2024, indicating a strong recovery from the destocking period that negatively impacted its bottom line [1] - The company is transitioning towards higher-value products, which may enhance its future profitability and market position [1] Investment Insights - The article highlights the investment strategies of Robert F. Abbott, who has been managing investments since 1995 and has incorporated options trading since 2010, suggesting a focus on risk management and income generation through covered calls and collars [1]

Financial Performance - Net sales for 2024 were $8,755.7 million, an increase of 4.67% compared to $8,364.3 million in 2023[294]. - Gross profit rose to $2,530.7 million in 2024, up from $2,277.5 million in 2023, reflecting a gross margin improvement[294]. - Net income for 2024 was $704.9 million, representing a 39.9% increase from $503.0 million in 2023[294]. - Total assets increased to $8,404.2 million in 2024, compared to $8,209.8 million in 2023, indicating a growth of 2.37%[293]. - Retained earnings grew to $5,151.2 million in 2024, up from $4,691.8 million in 2023, marking an increase of 9.8%[298]. - Total current liabilities rose to $2,862.6 million in 2024, compared to $2,699.5 million in 2023, an increase of 6.04%[293]. - Net cash provided by operating activities increased to $938.8 million in 2024 from $826.0 million in 2023, reflecting a growth of 13.6%[299]. - Cash and cash equivalents at the end of 2024 were $329.1 million, up from $215.0 million at the end of 2023, representing a 53.1% increase[299]. - Dividends paid in 2024 totaled $277.5 million, compared to $256.7 million in 2023, an increase of 8.1%[299]. - The company reported a decrease in inventories by $90.7 million in 2024, contrasting with an increase of $111.7 million in 2023[299]. Shareholder Returns - The company repurchased 1,184,780 shares for treasury at a cost of $247.5 million during the year[298]. - Dividends per share increased to $3.45 in 2024 from $3.18 in 2023, reflecting a commitment to returning value to shareholders[298]. - The weighted average number of common shares outstanding was 80.4 million in 2024, slightly down from 80.7 million in 2023[294]. - The company had $346.9 million remaining authorized for share repurchase as of December 28, 2024, under the Board's authorization from April 2022[445]. Risk Management - The company aims to manage foreign currency exchange risks by entering into forward, option, and swap contracts, although it does not fully hedge its foreign currency translation exposure[272]. - The estimated maximum potential one-day loss in earnings for foreign exchange positions and contracts was not significant at year-end 2024 or 2023[277]. - The company faces risks related to international operations, including geopolitical conditions, fluctuations in foreign currency exchange rates, and changes in demand affecting sales[1]. - The company is exposed to fluctuations in the cost and availability of raw materials and energy, which can impact its business operations[1]. - The company is subject to risks associated with legal and regulatory matters, including compliance and anti-corruption, environmental, health and safety, and trade compliance[1]. Product Development and Innovation - The company has a focus on the timely development and market acceptance of new products, including sustainable or sustainably-sourced products[1]. - Research and development costs related to new products and applications are expensed as incurred, reflecting the company's commitment to innovation[337]. Acquisitions and Investments - The company completed three business acquisitions in 2023, including Silver Crystal Group, LG Group, and Thermopatch, with an aggregate purchase consideration of approximately $231 million[349][350]. - The 2022 acquisitions of TexTrace and Rietveld had an aggregate purchase consideration of approximately $35 million, funded through cash and commercial paper borrowings[352]. - Approximately $94 million of identifiable finite-lived intangible assets were acquired in 2023, including $68.8 million in customer relationships with a weighted average amortization period of 11 years[357][359]. Debt and Financing - Long-term borrowings increased to $539.2 million in 2024 from $394.9 million in 2023, reflecting a growth of 36.5%[299]. - The company issued €500 million of senior notes in November 2024, with net proceeds of approximately $539 million intended for repaying maturing senior notes and general corporate purposes[369]. - The fair value of total debt was $3.01 billion as of December 28, 2024, down from $3.11 billion as of December 30, 2023[379]. - The company had no outstanding borrowings from U.S. commercial paper as of December 28, 2024, down from $112 million as of December 30, 2023, with a weighted average interest rate of 5.54%[364]. Pension and Employee Benefits - The projected benefit obligations for U.S. pension benefits decreased from $51.8 million in 2023 to $49.3 million in 2024, while non-U.S. obligations increased from $586.9 million to $679.9 million[401]. - The funded status of U.S. pension plans showed a deficit of $44.6 million in 2024 compared to a deficit of $49.3 million in 2023, indicating an improvement of approximately 9.5%[403]. - The net periodic benefit cost for U.S. pension plans in 2024 was $2.5 million, compared to a credit of $1.4 million in 2023, indicating a shift in cost[407]. - Expected contributions for U.S. pension plans in 2025 are projected at $6.2 million, while Non-U.S. pension plans are expected to receive $17.5 million[409]. Stock-Based Compensation - Stock-based compensation expenses increased to $28.7 million in 2024 from $22.3 million in 2023, a rise of 28.8%[299]. - The company had approximately $38 million of unrecognized compensation expense related to unvested stock-based awards as of December 28, 2024, expected to be recognized over two years[451]. - The total intrinsic value of stock options exercised in 2024 was $19.5 million, with approximately $10 million received from these exercises[455]. Restructuring and Operational Changes - Total restructuring charges for 2024 amounted to $28.8 million, net of reversals, related to the reduction of approximately 1,280 positions[468]. - Restructuring charges of $13.1 million were recorded in Q4 2024 related to the reduction of approximately 90 positions[466]. - Restructuring charges of $49.0 million were recorded in 2023, net of reversals, related to the reduction of approximately 1,450 positions[468].

Financial Performance Highlights - Full year 2024 net sales reached $8.8 billion[11] - Full year 2024 adjusted EPS grew by 19% to $9.43[11] - The company generated $700 million in adjusted free cash flow, a $108 million increase compared to the previous year[12] - The company returned $525 million to shareholders through dividends and share repurchases[12] - Q4 2024 adjusted EPS increased by 10% to $2.38[23] Sales Growth Analysis - Full year sales change ex currency increased by 5.1%, and organic sales change increased by 4.5%[11] - Q4 sales change ex currency was up 3.5%, with organic sales change up 3.3%[23] - Intelligent Labels sales reached $0.9 billion, with organic growth of approximately 9%[15] Margin Performance - Full year adjusted EBITDA margin increased by 130 bps to 16.4%, and adjusted operating margin also increased by 130 bps to 12.8%[13] - Q4 adjusted EBITDA margin increased by 40 bps to 16.4%, and adjusted operating margin also increased by 40 bps to 12.8%[25] 2025 Outlook - The company expects adjusted EPS of $9.80 to $10.20 in 2025, representing approximately 10% growth ex currency[20] - The company anticipates organic sales growth of 3.0% to 4.0% in 2025[20] - The company is targeting approximately 100% adjusted free cash flow conversion, with fixed and IT capital spending of approximately $250 million[44]

Core Insights - Avery Dennison Corporation (AVY) reported adjusted earnings of $2.38 per share for Q4 2024, surpassing the Zacks Consensus Estimate of $2.37, marking a 10% year-over-year increase [1][2] - Total revenues for Q4 2024 reached $2.19 billion, a 3.6% increase year-over-year, although it fell short of the Zacks Consensus Estimate of $2.20 billion [3][10] - The company’s adjusted EPS for the full year 2024 was $9.43, exceeding the Zacks Consensus Estimate of $9.41, and represented a 19% year-over-year increase [9] Financial Performance - The cost of sales improved by 4.1% year-over-year to $1.58 billion, while gross profit rose 2.2% to $609 million [3] - Marketing, general and administrative expenses decreased to $329 million from $335 million in the previous year, with adjusted operating profit increasing to approximately $280 million from $261 million [4] - The adjusted operating margin improved to 12.8% compared to 12.4% in the prior-year quarter [4] Segment Performance - Revenues in the Materials Group segment increased by 3.7% year-over-year to $1.47 billion, although it missed the estimate of $1.48 billion [5] - The Solutions Group saw revenues rise by 3.2% year-over-year to $714 million, also falling short of the estimated $735 million [6] - Adjusted operating income for the Materials Group increased by 9.6% to $217.5 million, while the Solutions Group's adjusted operating income grew by 0.9% to $81 million [5][6] Cash and Debt Position - The company returned $525 million to shareholders through share repurchases and dividends in 2024, repurchasing 1.2 million shares [7] - Cash and cash equivalents at the end of 2024 were $329 million, up from $215 million at the end of 2023 [7] - Long-term debt decreased to $2.56 billion from $2.62 billion, with a net debt to adjusted EBITDA ratio of 2.0X [7] Future Guidance - For 2025, Avery Dennison expects adjusted EPS to be between $9.80 and $10.20 [11] Stock Performance - Avery Dennison's shares have declined by 1.7% over the past year, compared to a 6.3% decline in the industry [12]

Core Insights - Avery Dennison reported $2.19 billion in revenue for Q4 2024, a year-over-year increase of 3.6% [1] - The EPS for the same period was $2.38, up from $2.16 a year ago, with a surprise of +0.42% over the consensus estimate [1] - The revenue fell short of the Zacks Consensus Estimate by -0.57% [1] Financial Performance Metrics - Net Sales for the Solutions Group were $713.70 million, compared to the estimated $735.97 million, reflecting a +3.2% change year-over-year [4] - Net Sales for the Materials Group were $1.47 billion, matching the estimated figure, with a +3.8% change year-over-year [4] - Adjusted Operating income for Corporate expenses was -$18.80 million, better than the estimated -$21.09 million [4] - Adjusted Operating income for the Solutions Group was $81.20 million, below the estimated $83.13 million [4] - Adjusted Operating income for the Materials Group was $217.50 million, slightly below the estimated $220.03 million [4] Stock Performance - Avery Dennison shares returned +3.1% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Core Insights - Avery Dennison (AVY) reported quarterly earnings of $2.38 per share, exceeding the Zacks Consensus Estimate of $2.37 per share, and up from $2.16 per share a year ago, indicating an earnings surprise of 0.42% [1] - The company posted revenues of $2.19 billion for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 0.57%, but up from $2.11 billion year-over-year [2] - The stock has gained approximately 3.1% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.41, with expected revenues of $2.22 billion, and for the current fiscal year, the consensus EPS is $10.34 on revenues of $9.13 billion [7] - The estimate revisions trend for Avery Dennison has been unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Office Supplies industry, to which Avery Dennison belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Acco Brands (ACCO), is expected to report quarterly earnings of $0.41 per share, reflecting a year-over-year increase of 5.1%, with revenues projected at $455.06 million, down 6.9% from the previous year [9]