Avery Dennison Boosts FY22 EPS Outlook On Solid Q2 Earnings

Avery Dennison Corp AVY reported second-quarter FY22 sales growth of 11.7% year-on-year to $2.347 billion, marginally beating the consensus of $2.34 billion.
Reported sales for the Label and Graphic Materials segment increased 8% to $1.5 billion; Retail Branding and Information Solutions surged 24% to $658 million; Industrial and Healthcare Materials grew by 1% to $198 million.
Gross profit rose 11.7% Y/Y to $643.5 million.
Marketing, general and administrative expenses rose 8.4% Y/Y to $332.7 million.
It reported an operating margin of 13%, with operating income growing 14% to $307.4 million.
The company held $164.8 million in cash and equivalents as of July 2, 2022. Net cash provided by operating activities for the six months was $394.4 million.
Adjusted EPS of $2.64 beat the analyst consensus of $2.37.
Outlook: Avery raised the FY22 adjusted EPS outlook to $9.70 - $10.00 (previously $9.45 - $9.85) versus the consensus of $9.62.
Price Action: AVY shares are trading higher by 1.36% at $174.10 in premarket on the last check Wednesday.

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