A slimmer Avery Dennison Corp. on Wednesday announced fiscal first quarter results that were in line with Wall Street expectations for profit, as the company begins to benefit from its restructuring.
The Glendale label maker reported net income of $71.2 million (65 cents a share) for the quarter ended March 29, compared to $57.8 million (59 cents) for the same period last year. Revenue rose about 3 percent to $1.55 billion.
The company’s net income barely missed analysts’ average per-share estimate of 66 cents, while revenue also was slightly below the expected $1.57 billion, according to Thomson Financial.
Chief Executive Dean Scarborough said he was pleased with the quarterly results, especially as it related to the firms strongest segment.
The company’s core business – pressure-sensitive, self-adhesive labels used on a wide range of consumer products and reflective highway signs – reported a rise in sales to more than $1.14 billion.
“Sales were up nearly 5 percent on an organic basis, driven by strong volume growth in Pressure-Sensitive Materials. Retail Branding and Information Solutions delivered another quarter of strong earnings growth, reflecting the successful execution of productivity initiatives across the business,” Scarborough said in a prepared statement.
As demand for paper office products has shrunk amid the digitization of the work environment, Avery Dennison sold its office products and engineered-solutions divisions last July to CCL Industries Inc. of Toronto, a printing and label company, for an estimated $400 million. It also moved from Pasadena to smaller corporate offices in Glendale early this year.
As a result of the restructuring, the company said it recorded about $10 million in savings and incurred restructuring costs of about $7 million. The company expects to incur cash restructuring costs of $45 million this year.
The company repurchased 1.2 million shares in the first quarter at a cost of $59 million.
Shares closed down $2.30, or 4.4 percent, to $49.46 on the New York Stock Exchange.
Cheesecake Factory
Cheesecake Factory Inc. said Wednesday that same-store sales rose at most of its outlets during the fiscal first quarter but poor weather cut into profits, which did not meet Wall Street forecasts.
The Calabasas operator of casual dining restaurants reported net income of $22.5 million (43 cents a share) in the quarter ended April 1, compared to $25.3 million (48 cents) in the same period a year earlier. Revenue rose about 4 percent to $481 million.
Analysts on average expected net income of 49 cents on revenue of about $478 million, according to Thomson Financial Network.
The company said comparable restaurant sales at its 169 Cheesecake Factory outlets rose 1.2 percent, while they declined by 2.9 percent at 11 Grand Lux Cafés, which were particularly affected by severe winter storms. It also reported higher operating costs that reduced profit.
Chief Executive David Overton said he was pleased by the overall performance.
“The strength of our sales performance was broad-based, with positive comparable sales in each of our markets, outside of the areas impacted by the harsh winter storms,” he said in a statement.
The company also recorded a pre-tax charge of $186,000 due to a planned relocation of one of the chain’s restaurants.
In its earnings, the company also declared a quarterly cash dividend of 14 cents a share, payable on May 20 to shareholders of record as of May 7. In addition, the company repurchased 2.1 million shares of its common stock at a cost of $99 million.
The company opened one new Cheesecake restaurant in the quarter and expects to open as many as 10 company-owned restaurants in the year, in addition to as many as three to four restaurants in the Middle East and Mexico under licensing agreements.
Shares lost $1.20, or 2.5 percent, to close at $46.80 on the Nasdaq.
IPC
IPC The Hospitalist Co. Inc. reported disappointing first quarter results on Wednesday as the manager of doctors’ groups was tripped up by its aggressive acquisition strategy.
The North Hollywood company, which provides doctors to hospitals and nursing homes, reported net income of $10.3 million (58 cents a share) for quarter ended March 31, compared to net income of $10.5 million (61 cents) for the same quarter last year. Revenue grew 12.9 percent to $173 million.
Analysts on average expected net income of 64 cents a share on revenue of $183 million, according to Thompson Financial Network.
Chief Executive Dr. Adam Singer said that the results were affected by the costs for integrating acquired practices, the end of contracts at several facilities and a few under-performing practices. Recent acquisitions include Preferred Hospitalists of Michigan PLLC in Warren, Mich. and CAP Medical Group PLLC in New Hartford, N.Y.
“We continue to anticipate seeing the benefit of our expanded recruiting resources in the second half of this year, and coupled with our acquisition pipeline, we are excited about the growth opportunities,” Singer said in a statement.
The company released its results after the close of markets on Wednesday. Shares earlier closed up 6 cents, or less than a percent, to $48.40 on the Nasdaq.
Teledyne
Teledyne Technologies Inc. posted fiscal first quarter profit on Wednesday that beat analysts’ estimates even as decreasing defense orders cut into revenue
The Thousand Oaks aerospace, marine and energy-products manufacturer reported net income of $46 million ($1.20 a share) for the quarter ended March 30, compared with $39.8 million ($1.07) in the same period last year. Revenue rose less than 1 percent to $574 million.
Analyst estimated earnings of $1.13 on revenue of $583 million, according to Thomson Financial Network.
Teledyne Chairman and Chief Executive Robert Mehrabian said that strong orders in the marine-oil and gas instrumentation businesses, commercial avionics and communication equipment helped offset a decrease in defense-related sales.
“Cash flow was strong, especially for a first quarter, providing continued flexibility for acquisitions,” he said in a statement.
Shares closed down $2.26 cents, or 2.3 percent, to $94.24 on the New York Stock Exchange.
On Assignment
On Assignment Inc. met first quarter profit estimates on Wednesday, while acquisitions helped the professional staffing service exceed revenue forecasts.
The Calabasas company reported net income of $13.9 million (25 cents a share) in the quarter ended March 31, compared to $24.6 million (46 cents) for the same quarter last year. Revenue increased nearly 16 percent to $439 million.
Analysts on average expected net income of 25 cents a share on revenue of $426 million, according to Thomson Financial Network.
The company noted that its revenue was boosted by several acquisitions during the past year, while the sale of a subsidiary in the first quarter of 2013 artificially inflated last year’s first-quarter profits by $14.4 million.
“Demand for our IT services continues to be robust, and we are well positioned to expand our market share,” said Chief Executive Peter Dameris in a statement.
On Assignment released its results after the close of markets on Wednesday.
Shares earlier closed down 77 cents, or less than a percent, to $36.27 on the New York Stock Exchange.
