The Gory Details on Avery Dennison's Double Fumble
Avery Dennison (NYS: AVY) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Avery Dennison missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Avery Dennison recorded revenue of $1.45 billion. The four analysts polled by S&P Capital IQ predicted a top line of $1.60 billion. Sales were 11% lower than the prior-year quarter's $1.64 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.39. The six earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share on the same basis. GAAP EPS of $0.21 for Q4 were 81% lower than the prior-year quarter's $1.06 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 230 basis points worse than the prior-year quarter. Operating margin was 4.9%, 100 basis points worse than the prior-year quarter. Net margin was 1.5%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.62 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $6.80 billion. The average EPS estimate is $2.70.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avery Dennison is outperform, with an average price target of $31.71.
Can your retirement portfolio provide you with enough income to last? You'll need more than Avery Dennison. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Avery Dennison to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.