Avery Dennison Beats Q3 Earnings Estimates, Raises FY24 View

Core Viewpoint - Avery Dennison Corporation (AVY) reported strong third-quarter 2024 adjusted earnings of $2.33 per share, slightly exceeding expectations, with a year-over-year increase of 9$2.18 billion, which was below the Zacks Consensus Estimate of $2.2 billion [2]. - The cost of sales increased by 2.9$1.56 billion, while gross profit improved by 7% to $627 million [2]. - Marketing, general, and administrative expenses rose to$347 million from $325 million in the prior year [2]. - Adjusted operating profit was approximately$280 million, up from $261 million in the previous year, resulting in an adjusted operating margin of 12.8$1.5 billion, with organic sales rising by 3.6% [3]. - The adjusted operating profit for the Materials Group grew by 3% year over year to $222 million [3]. - Revenues in the Solutions Group rose by 7$686 million, with organic sales growth of 6% [3]. - The adjusted operating income for the Solutions Group increased by 26% year over year to $77 million [3]. Cash and Debt Position - The company returned$315 million to shareholders through share repurchases and dividends in the first nine months of 2024, repurchasing 0.5 million shares [4]. - Cash and cash equivalents at the end of the quarter were $213 million, slightly up from$210 million a year ago [4]. - Long-term debt decreased to $2.04 billion from$2.6 billion at the end of the third quarter of 2023 [4]. Guidance and Projections - Avery Dennison revised its guidance for 2024, expecting reported sales growth in the range of 5.0-5.5%, up from the previous 4.5-5.5% [4]. - The company anticipates organic sales growth between 4.5-5.0%, an increase from the prior range of 4.0-5.0% [4]. - Full-year adjusted EPS is projected to be in the range of $9.35-$9.50, reflecting a 19% growth from adjusted EPS of $7.90 in 2023 [5]. Stock Performance - Avery Dennison's shares have increased by 25% over the past year, outperforming the industry growth of 17.1% [6].