Shares of Avery Dennison (NYSE: AVY) surged 5.15% in pre-market trading on Wednesday after the packaging products maker reported better-than-expected third-quarter earnings and announced a strategic partnership with Walmart to enhance freshness and operational efficiency using RFID technology.

The company reported adjusted earnings per share of $2.37 for the quarter, beating analysts' expectations of $2.33. Revenue rose 1.5% year-over-year to $2.22 billion, in line with Wall Street estimates. Avery Dennison's solid performance was attributed to cost-cutting measures, price hikes, and strong demand in high-value categories, including its Intelligent Labels business.

Adding to investor enthusiasm, Avery Dennison announced a collaboration with Walmart to implement RFID technology in fresh food departments. This innovative solution is designed to improve inventory tracking, reduce food waste, and increase operational efficiency in Walmart's meat, bakery, and deli sections. The partnership highlights Avery Dennison's growing presence in the RFID market and potential for future growth in retail applications.