Avery Dennison(US:AVY) ZACKSยท2024-09-20 15:36Group 1: Investor Day Highlights - Avery Dennison Corporation (AVY) hosted its 2024 Investor Day, with shares gaining 3.1% as the company affirmed its long-term targets of over 5% sales growth, adjusted EBITDA margin exceeding 16%, and around 10% adjusted EPS growth from 2020 to 2025 [1] Group 2: Intelligent Labels Outlook - The Materials segment is expected to be driven by attractive packaging and e-commerce expansion, increasing demand for labels [2] - The growth rate for Intelligent Labels has been adjusted to 15%, down from a previous estimate of 15% to 20%, due to destocking impacts in apparel and a lower demand outlook from logistics customers [2] Group 3: Long-term Financial Targets - The company targets more than 5% sales growth (excluding currency effects) and aims for an adjusted EBITDA margin exceeding 17% by 2028, along with around 10% adjusted EPS growth in the long term [3] Group 4: Capital Allocation Strategy - Avery Dennison plans to allocate approximately $8 billion in capital over the next five years for organic growth and M&A, with 50-55% designated for share repurchases and M&A, and around 20% for dividend expansion [4] - In the first half of 2024, the company returned $177 million to shareholders through share repurchases and dividends, repurchasing 0.2 million shares [4] Group 5: Fiscal 2024 Guidance - For the second quarter of 2024, Avery Dennison reported adjusted earnings of $2.42 per share, reflecting a 26% year-over-year growth, with total revenues increasing by 6.9% to $2.24 billion [5] - The company updated its full-year adjusted EPS guidance to $9.30-$9.50, indicating a year-over-year growth of 19% at the midpoint [5] Group 6: Stock Performance - Avery Dennison shares have outperformed the industry, gaining 21.8% over the past year compared to the industry's growth of 19.3% [6]