Shares Avery Dennison Corp. fell nearly 5 percent Tuesday after the Glendale packaging and labeling company reported worse-than-expected quarterly earnings.
Adjusted earnings totaled $128 million, or $1.45 a share, 2 cents below the $1.47 mark analysts had expected, according to Thomson Reuters.
Although the company’s earnings underperformed, net sales increased 4.8 percent year-over-year to $1.76 billion.
“Label and Graphic Materials delivered strong sales growth, while its margin declined in the face of continued inflationary pressure; we expect meaningful recovery in the fourth quarter, as recent pricing actions take full effect,” said Avery Dennison Chief Executive Mitch Butier in a statement.
Shares of Avery Dennison (AVY) fell $4.57, or almost 5 percent, on Tuesday to close at $92.40 on the New York Stock Exchange.