Avery Dennison Lifts FY16 Earnings View As Q2 Profit Tops Estimates

(RTTNews) - Avery Dennison Corp. (AVY), a provider of pressure-sensitive materials, on Tuesday raised the midpoint for its fiscal 2016 reported earnings per share by $0.10 and adjusted earnings per share by $0.05.

The company now expects 2016 reported earnings per share of $3.35 to $3.50, and adjusted earnings per share of $3.80 to $3.95.

On average, 10 analysts polled by Thomson Reuters expect earnings of $3.83 per share for the year. Analysts' estimates typically exclude special items.

Mitch Butier, Avery Dennison president and CEO, said, "We have raised our outlook for full year earnings per share, reflecting the strong operating performance in the second quarter. We remain confident that the consistent execution of our strategies will enable us to continue meeting our long-term goals for superior value creation through a balance of profitable growth and capital discipline."

For the second quarter, net income climbed 26 percent to $80 million from $63.7 million last year. Earnings per share grew 29 percent to $0.88 from $0.68 a year ago.

Adjusted income per share was $1.09, compared to $0.91 a year ago. Analysts expected earnings of $1.01 per share for the quarter.

Total net sales increased 2 percent to $1.54 billion from $1.52 billion a year ago. On an organic basis, sales grew 4 percent.

Analysts were looking for revenues of $1.54 billion for the quarter.