AVY Earnings Prediction
The chart below shows how AVY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AVY sees a +2.29% change in stock price 10 days leading up to the earnings, and a +1.85% change 10 days following the report. On the earnings day itself, the stock moves by -2.68%. This data can give you a slight idea of what to expect for the next quarter's release.
AVY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.19B
3.56%
0.11%
Gross Margin
27.87%
-1.31%
-2.89%
Operating Margin
12.81%
0.55%
0.00%
Net Margin
7.96%
17.40%
-4.33%
EPS
2.16
22.03%
-4.00%
No Data Available
AVY Earnings Analysis
Avery Dennison Corp Corporation (AVY.N) Earnings Conference Call
Positive
Sales and Earnings Growth: Sales grew 5% for the year, with adjusted EBITDA margin expanding by 130 basis points and adjusted EPS growing 19% at the high end of guidance.
Strong Adjusted EBITDA Margins: Adjusted EBITDA margins were strong at 16.4% in Q4, up 40 basis points compared to the prior year, with adjusted EBITDA dollars increasing by 6%.
Strong Free Cash Flow: Generated strong adjusted free cash flow of $280 million in Q4 and $700 million for the full year, achieving 100% adjusted free cash flow conversion.
Shareholder Returns Strategy: Returned $525 million to shareholders through dividends and share repurchases in 2024, with a significant acceleration in share buybacks in Q4.
Adjusted EPS Growth Forecast: Expect adjusted EPS in 2025 to be in the range of $9.80 to $10.20, representing a growth of approximately 10% excluding currency effects.
Negative
Q4 Sales Growth Slowdown: Sales growth in Q4 was only 3.3% on an organic basis, indicating a slowdown compared to previous quarters.
Intelligent Labels Segment Performance: Intelligent Labels segment growth was only 9% for the year, falling short of initial expectations and reflecting a decline in logistics sales.
EBITDA Margin Decline: Solutions Group's adjusted EBITDA margin decreased by 40 basis points to 17.8%, primarily due to higher employee-related costs and unfavorable product mix.
Solutions Group Performance Decline: High value solutions within the Solutions Group experienced a mid single-digit decline, which was below expectations and negatively impacted overall segment performance.
Currency Translation Impact: The company anticipates a $30 million headwind to operating income from currency translation in 2025, which could further pressure financial results.
AVY FAQs
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AVY Earning Call Sentiment
Earnings call transcript: Avery Dennison Q4 2024 misses EPS forecast
AVY.N
1.34%Positive
Avery Dennison's earnings report reveals strong financial performance with a 19% EPS growth and expanded EBITDA margins. Raised full-year earnings guidance and robust shareholder returns through dividends and buybacks further boost sentiment. However, concerns about logistics sales and indirect geopolitical risks slightly temper the outlook. The Q&A highlights management's cautious approach to logistics volume declines, but overall, the positive financial metrics and strategic initiatives, like the Kroger collaboration, suggest a likely stock price increase in the coming weeks.
