Avery Dennison Corp. on Wednesday reported earnings that exceeded analyst expectations on earnings and matched expectations on revenue, citing organic growth in the product labels business.
The Glendale label and packaging materials supplier reported adjusted net income of $71.6 million (77 cents a share) in the fiscal first quarter ended April 4, compared to $71.2 million (73 cents) for the same quarter last year. Revenue dropped 1 percent to $1.5 billion.
Analysts on average expected pro forma earnings of 69 cents a share on revenue of $1.5 billion, according to Thomson Financial Network.
The company’s largest segment, its Pressure Sensitive Materials division, which accounts for more than 70 percent of its total sales, fell 2 percent to $1.2 billion. The division makes labels for diverse products, from alcoholic beverages to personal care items.
The company updated its adjusted earnings for the year to $3.25 to $3.45. The previous outlook had been for earnings of $3.20 to $3.40.
“We have raised our outlook for full-year adjusted earnings per share, as we expect additional productivity improvement will offset the incremental pressure we’ve seen from a stronger dollar,” Chief Executive Dean Scarborough said in a prepared statement.
Shares closed up $2.77, or more than 5 percent, to $54.61 on the New York Stock Exchange.
Poor weather in March contributed to On Assignment Inc. falling below analyst expectations for revenue in the first quarter, the company announced Wednesday.
The Calabasas staffing company reported net income of $39.1 million (75 cents a share) for the first quarter ending March 31 compared with net income of $13.9 million (25 cents) in the same period a year earlier. Revenue increased 6 percent to $430 million.
Analysts on average expected earnings of 43 cents on revenue of $437 million, according to Thomson Financial Network.
“Our revenues for the quarter were adversely affected more than expected by the inclement weather in March and the further strengthening of the U.S. dollar relative to the Euro,” Chief Executive Peter Dameris said in a prepared statement.
Apex Systems, the company’s largest business unit which provides technology staffing, provided about $294 million revenue or about 68 percent, while Oxford Global Sources, the second largest business unit brought in $128 million in revenue or about 30 percent.
During the quarter On Assignment sold off its physician staffing business Vista Staffing Solutions Inc. for $123 million to Envision Healthcare, a firm specialized in providing ambulance and emergency room personnel with headquarters in Greenwood Village, Colo.
Shares closed down 93 cents, or 2.4 percent, to $37.84 on the Nasdaq.