Company Reports

Narrow-moat Avery Dennison reported second-quarter results that were largely in line with our expectations. Net sales rose almost 7% year over year as both segments experienced growth, while consolidated operating margin expanded almost 400 basis points to 11.7%. This margin expansion was mainly driven by higher volumes in the quarter and a favorable mix. Many of the destocking headwinds that have weighed on Avery for over a year now have abated, enabling the company to return to more-normalized operations and capitalize on end-market demand. As such, we've increased our fair value estimate to $166 from $158 per share due to higher near-term revenue and profitability in our forecast.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Narrow-moat Avery Dennison reported solid first-quarter results that came with few surprises. Organic sales increased 3% year over year as both the materials and the solutions groups experienced top-line growth. Consolidated operating margins expanded 260 basis points to 11.8% on a strong performance from the materials group. Destocking headwinds continue to moderate, which has relieved pressure on volumes and enabled margin expansion during the quarter. This is a welcome development for Avery after a challenging 2023, and we expect this trend will lead to solid earnings growth through 2024. As such, we've increased our fair value estimate to $158 from $154 per share due to higher near-term profitability in our forecast.

Narrow-moat-rated Avery Dennison reported solid fourth-quarter results that came with few surprises as the company closed out a challenging year. Organic sales for the full year fell almost 8% as inventory destocking weighed heavily on volumes, but the company was able to buck the trend in the fourth quarter, with organic sales rising 1.1% from a year ago due to a strong performance from the solutions group. We are encouraged by Avery’s fourth-quarter results and management’s belief that much of the inventory destocking headwinds are now behind the company, which should provide a runway for volume growth in 2024. As such, we've increased our fair value estimate to $154 from $151 per share due to higher near-term revenue in our forecast.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Narrow-moat-rated Avery Dennison reported lackluster third-quarter results as inventory destocking along much of the supply chain continued to pressure volumes. Organic net sales fell 11.5% year over year, which was driven by lower volume in both segments and heightened weakness in developed markets. That said, management noted sequential gains in volume, signaling potential moderation of inventory destocking that has plagued the packaging industry for much of the year. We've decreased our fair value estimate to $151 from $155 per share due to lower near-term revenue and profitability in our forecast.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Narrow-moat-rated Avery Dennison reported second-quarter results that were largely in line with our expectations. The company continues to navigate destocking trends in the apparel industry as organic net sales fell roughly 10% amid double-digit declines in volume. Additionally, adjusted operating margin contracted 200 basis points to 11.2%, largely due to lower volume that was offset by temporary cost reduction initiatives. Management noted that while destocking activity appeared to moderate during the quarter, the recovery was slower than anticipated. That said, we maintain our view that destocking trends will soften in the second half of the year, which should relieve some margin and volumes pressures. We've decreased our fair value estimate to $142 from $144 per share due to lower near-term profitability in our forecast.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Narrow-moat-rated Avery Dennison reported lackluster first-quarter results as destocking trends continued, weighing on Avery's top line and pressuring margins. Organic sales decreased 9% year over year while adjusted operating margin decreased 210 basis points to 10.1%. That said, this was a roughly 80-basis-point increase sequentially as pricing actions helped offset volume declines. Destocking trends that have troubled Avery over the last few quarters appear to be moderating and as such we expect a rebound in demand in the second half of the year. As a result, we are maintaining our $144 fair value estimate.

Narrow-moat Avery Dennison reported fourth-quarter 2022 results that were slightly below our expectations. Organic sales decreased 1% year over year in the fourth quarter, but were up almost 10% for the full year. Adjusted operating margin for the fourth quarter decreased 230 basis points from a year ago to 9.3% on lower volume and rising costs. While we anticipate volume growth will be minimal in 2023, higher selling prices across Avery’s portfolio should lift revenue and provide some margin relief.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Narrow-moat-rated Avery Dennison reported solid third-quarter results that were largely in line with our expectations. Organic sales increased over 15% year over year on resilient end market demand. Adjusted operating margins came in at 12.4%, which was flat year over year as Avery's previous pricing actions were offset by higher input and operating costs. We expect additional selling price increases across Avery's product portfolio as it works to combat rising costs.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Narrow-moat-rated Avery Dennison reported strong second-quarter results that were driven by robust end-market demand and higher selling prices. Organic sales rose 11% year over year with all three segments reporting organic growth. Adjusted operating margins rose 50 basis points to 13.2% as selling price increases offset higher raw material and energy costs.

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.