Avery Dennison Corp. on Tuesday reported much better-than-expected first quarter results, boosted by higher sales in a recovering economy. Shares jumped more than 7 percent on the news.
The Los Angeles maker of labels and other office supplies reported net income of $54.7 million (51 cents a share), compared with a loss of $899 million (-$8.99) a year earlier. Revenue rose 8 percent to $1.55 billion.
Excluding one-time items, the company earned 61 cents a share. Analysts surveyed by Thomson Reuters on average expected adjusted per-share earnings of 43 cents on revenue of $1.46 billion.
"We're especially pleased with the increased demand benefiting our pressure-sensitive materials and retail information services segments,” said Chief Executive Dean Scarborough in a statement.
For 2010, the company sees adjusted earnings of $2.50 to $2.80 a share. Analysts on average were expecting earnings of $2.53 a share.
Shares were up $2.73, or 7 percent, to $42.03 in midday trading on the New York Stock Exchange, after earlier hitting a 52-week high of $43.33.
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