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Avery Dennison Earnings & Revenues Fall Short of Estimates in Q1

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Avery Dennison Corporation AVY has delivered adjusted earnings of $2.30 per share in first-quarter 2025, missing the Zacks Consensus Estimate of $2.32. The bottom line marked a 0.4% year-over-year improvement. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Including one-time items, the company reported earnings per share (EPS) of $2.09 compared with the year-ago quarter’s $2.13.

Avery Dennison Corporation Price, Consensus and EPS Surprise

 

Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote

Avery Dennison’s Revenues & Gross Profit Dip Y/Y in Q1

Total revenues slipped 0.1% year over year to $2.148 billion and missed the Zacks Consensus Estimate of $2.151 billion.
 
The cost of sales in the quarter inched up 0.5% year over year to $1.53 billion. The gross profit fell 1.7% year over year to $621.5 million.

Marketing, general and administrative expenses were $347 million compared with $365 million in the year-ago quarter. The adjusted operating profit was $274.5 million compared with the prior-year quarter’s $273.7 million. The adjusted operating margin was 12.8%, up from 12.7% in the year-ago quarter.

AVY’s Segmental Highlights

Revenues in the Materials Group segment decreased 1.1% year over year to $1.48 billion in the reported quarter. The reported figure missed our estimate of $1.49 billion. On an organic basis, sales moved up 1.2%. We predicted organic sales to rise 3.2%. The segment’s adjusted operating profit fell 4.2% year over year to $230 million.

Revenues in the Solutions Group rose 2% year over year to $668 million. We estimated revenues of $655 million for this segment. On an organic basis, sales improved 4.9%. Our model predicted a rise of 3.4%. The segment’s adjusted operating income increased 12% year over year to $68 million.

Avery Dennison’s Cash & Debt Position

The company returned $331 million in cash to shareholders through share repurchases and dividend payments in the first quarter of 2025. AVY repurchased 1.4 million shares throughout the quarter.

Avery Dennison ended the quarter with cash and cash equivalents of $196 million compared with $186 million at the end of the prior-year comparable quarter. The company’s long-term debt was $2.58 billion at the end of the quarter under review, up from $2.07 billion at the end of the first quarter of 2024.

AVY realized approximately $14 million in pre-tax savings from restructuring (net of transition costs) in the quarter. The company also incurred pre-tax restructuring charges of around $5 million.