Avery Dennison (AVY) shares plummeted 5.71% in pre-market trading on Tuesday following the release of its second-quarter earnings report and third-quarter guidance. The packaging products maker's results and outlook fell short of Wall Street expectations, prompting investor concerns about the company's near-term performance.
The company reported second-quarter sales of $2.22 billion, down 0.7% from the previous year and below the analyst consensus estimate of $2.24 billion. While Avery Dennison's adjusted earnings per share of $2.42 slightly beat expectations of $2.39, it remained unchanged from the same period last year, indicating stagnant growth.
Adding to the pessimism, Avery Dennison provided a disappointing outlook for the third quarter. The company forecasts adjusted earnings per share between $2.24 and $2.40, falling below the Wall Street consensus of $2.41. This guidance suggests potential challenges in maintaining profitability in the coming months.
CEO Deon Stander acknowledged the impact of trade policy changes on the company's performance, stating, "Trade policy changes led to lower sourcing demand for apparel and general retail categories in the quarter." However, he noted that growth in high-value categories and productivity improvements in the base business helped offset the impact from tariffs. Despite these efforts, investors seem concerned about the ongoing uncertainty in the macroeconomic environment and its potential to continue affecting Avery Dennison's business.
免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。