Avery Dennison Corp. beat Wall Street estimates on adjusted earnings for the fourth quarter but just missed on revenue. Its stock surged.
The Glendale label and graphic materials manufacturer on Wednesday reported an adjusted net income of $147 million ($1.73 a share) for the quarter ending Dec. 28, well up from $133 million ($1.52) in the same period a year earlier. Revenue decreased by 0.2 percent to $1.7 billion.
Analysts on average expected earnings of $1.69 a share on revenue of $1.8 billion, according to Thomson Financial Network.
Chief Executive Mitch Butier said the company did well in the quarter despite challenging market conditions and significant currency headwinds.
“Our focus in this environment is on protecting our margins in the base business, while driving faster-than-average growth and continuing to invest disproportionately in high value categories like RFID,” Butier said in a statement. “We are executing well on both fronts.”
Shares in Avery Dennison (AVY) closed up $7.02, or more than 5 percent, to $136.23 on the New York Stock Exchange on a day when the Dow Jones industrial average and Nasdaq increased slightly and the S&P 500 decreased slightly.