Avery Dennison posts strong Q3, raises adjusted EPS forecast

In a preliminary results statement for the third quarter, Avery Dennison said that reported EPS of 2.25 dollars increased by 32 percent, while adjusted EPS of 2.33 dollars, was up 9 percent. The company’s net sales for the quarter of 2.2 billion dollars increased by 4 percent.

Adjusting its outlook for the year ahead, the company said that it now expects reported EPS to range between 8.75 dollars to 8.90 dollars against previous guidance of between 8.75 dollars to 8.95 dollars.

Avery Dennison has however raised its adjusted EPS guidance and now expects it to range between 9.35 dollars to 9.50 dollars versus 9.30 dollars to 9.50 dollars previously.

“We delivered a strong third quarter with strong earnings growth, above expectations, driven by higher volume and productivity gains. We have raised our full-year outlook for adjusted earnings per share,” said Deon Stander, the company’s president and CEO.

The company’s materials group reported sales increased 3 percent to 1.5 billion dollars and label materials sales were up low-to-mid single digits on an organic basis. Volume/mix was up mid-single digits, which was partially offset by deflation-related price reductions. Graphics and reflectives were up mid-single digits organically and performance tapes and medical were up low single digits organically.

Solutions Group reported sales increased 7 percent to 686 million dollars with sales in high-value categories were up low single digits. The company saw strong growth in apparel and general retail in Intelligent labels, partially offset by logistics in intelligent labels and other high-value solutions.