Stock Leaps on Avery Dennison EarningsWednesday, February 1, 2017
Avery Dennison Corp.’s stock shot up Wednesday after it reported that it beat Wall Street expectations for the fourth quarter.
The Glendale manufacturer of labeling and packaging materials reported net income of $62 million (69 cents a share) in the quarter ending Dec. 31, up from $57 million (62 cents) in the same period a year earlier. Revenue rose 5 percent to $1.6 billion.
On an adjusted basis, the company reported earnings per share of 99 cents. Analysts on average expected adjusted earnings of 93 cents on revenue of $1.5 billion, according to Thomson Financial Network.
Chief Executive Mitch Butier said he was pleased with the company’s strong organic sales growth and margin expansion and that the same will continue throughout the year.
“We remain confident that the consistent execution of our strategies will enable us to achieve our long-term goal of superior value creation through a balance of profitable growth and capital discipline,” Butier said in a prepared statement.
Shares closed up $6.61, or more than 9 percent, to $79.63 on the New York Stock Exchange.