Avery Dennison Q1 Earnings Tops Estimates; Raises FY22 EPS Outlook

Avery Dennison Corp AVY reported first-quarter FY22 sales growth of 14.5% year-on-year to $2.35 billion, beating the consensus of $2.28 billion.
Reported sales for the Label and Graphic Materials segment increased 8% to $1.5 billion; Retail Branding and Information Solutions surged 41% to $679 million; Industrial and Healthcare Materials fell by 1% to $190 million.
Gross profit rose 7.4% Y/Y to $641.3 million.
Marketing, general and administrative expenses rose 13.7% Y/Y to $355 million.
It reported an operating margin of 12.3%, with operating income growing 1% to $287.9 million.
The company held $147.1 million in cash and equivalents as of April 2, 2022. Net cash provided by operating activities for the quarter was $126.2 million.
Adjusted EPS of $2.40 beat the analyst consensus of $2.17.
Outlook: Avery raised the FY22 adjusted EPS outlook to $9.45 - $9.85 from the prior view of $9.35 - $9.75, versus the consensus of $9.57.
Price Action: AVY shares are trading higher by 2.96% at $173.68 on the last check Tuesday.

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