Avery Dennison Corp. beat Wall Street estimates on earnings, sending the company’s stock up more than 4 percent Tuesday.
The Glendale label and industrial supply company reported on Tuesday net income of $147 million and adjusted earnings of $1.72 per share on revenue of $1.8 billion for the quarter ending June 30. Zacks Consensus Estimate predicted earnings of $1.68 per share and total revenue of $1.83 billion.
The second-quarter results compare to net income of $148 million ($1.69 per share) on revenue of $1.85 billion in the same period a year earlier.
“Our Q2 earnings were in line with our expectations, as we more than offset softer-than-expected organic growth with accelerated productivity actions,” Chief Executive Mitch Butier said in a statement. “High-value categories continue to grow faster than the base business, which, combined with our relentless focus on productivity, enable margin expansion even in a slower growth environment.”
He explained that soft growth in Avery Dennison’s label and graphic materials line of business reflected lower volume, while retail branding and information solutions posted more robust organic growth driven by increased sales of radio frequency identification solutions.
Shares of Avery Dennison (AVY) closed Tuesday up $4.80, or 4.3 percent, to $117.09 on the New York Stock Exchange.
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