Avery Dennison Q1 Earnings Tops Estimates; Raises FY22 EPS Outlook

• Avery Dennison Corp (NYSE: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.