Avery Dennison's Q1 Earnings Come Up Short, With Cautious Outlook For Q2

Benzinga
2025/04/23

Avery Dennison Corporation (NYSE:AVY) shares are trading lower on Wednesday after the first-quarter FY25 earnings results.

The company reported a first-quarter sales decline of 0.14% year-over-year to $2.15 billion, matching the analyst consensus estimate.

Adjusted EPS of $2.30 missed the consensus estimate of $2.32.

Materials Group sales decreased 1.1% to $1.5 billion and that of Solutions Group climbed 2% to $668 million.

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Gross profit for the quarter fell 1.7% to $621.5 million with a gross margin of 27.8%. Adjusted EBITDA increased 0.4% to $352.4 million.

During the first quarter, the company returned $331 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 1.4 million shares at an aggregate cost of $262 million.

“We have a proven track record of delivering strong results across cycles, due to the strength of our overall franchise,” said president and CEO, Deon Stander.

“While uncertainty is elevated, we are prepared for multiple scenarios as we progress through the year.”

The company held $195.9 million in cash and equivalents as of March 29, 205.

Outlook: Avery Dennison expects second-quarter adjusted EPS of $2.30 – $2.50, below the estimate of $2.56.

Price Action: AVY shares traded lower by 1.5% at $172.10 at last check Wednesday.

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Photo: Shutterstock

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