Avery Dennison Corp. (AVY) on Wednesday reported an increase in earnings, but it apparently discouraged investors who drove down the stock price more than 6 percent.
The manufacturer of labeling and packaging materials, based in Glendale, reported third quarter earnings of $89.1 million ($1.01 a share adjusted), up from $81.7 million (87 cents) in the same quarter last year. Analysts were expecting $1.
Net sales were $1.51 billion, up 3 percent and in line with expectations.
A solid third-quarter overall and anticipation of a lower annual tax rate than previously expected prompted Avery to increase its fiscal year guidance for earnings-per-share to a range of $3.95 to $4.00, up from $3.80 to $3.95.
However, Avery Dennison stock fell $4.86, or 6.4 percent, to close at $70.91 on the New York Stock Exchange on Wednesday, a day when the overall market declined a fraction of 1 percent.