Why Avery Dennison's Shares Jumped
What: Shares of label and sign maker Avery Dennison spiked as much as 13% higher today before settling to an 8% gain at the end of trading.
So what: The driver of the stock today was the company's earnings report, which beat Wall Street's expectations. Revenue rose 3%, to $1.5 billion, and net income fell 37%, to $37 million, or $0.37 per share. But after adjusting for one-time items, earnings from continuing operations were $0.69 per share, $0.05 ahead of estimates.
Now what: To put icing on the cake, management raised the bottom of its full-year earnings guidance, now expecting $2.60-$2.70 per share in earnings. The company recently sold off the office and consumer side of the business in an effort to focus on higher-value business applications. What's left is a slow-growing but stable company. I don't think the stock is a great value given the low growth rate, but if shares pull back, the 2.6% dividend yield may become attractive.
The article Why Avery Dennison's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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