Avery Dennison Q4 Profit Tops View, But Revenues Miss; Guides 2015 EPS In Line

(RTTNews) - Labeling and packaging materials firm Avery Dennison Corp. (AVY) reported Monday a profit for the fourth quarter that surged from last year, reflecting lower charges and revenue growth. The results were also impacted by lower provision fro income taxes.

Adjusted earnings per share from continuing operations topped analysts' expectations, while quarterly revenues missed their estimates. The company also provided earnings outlook for the full-year 2015, in line with Street view.

The company noted that results reflect classification of former office and consumer products (OCP) as well as designed and engineered solutions (DES) businesses as discontinued operations. The company completed the sale of these businesses on July 1, 2013.

Pasadena, California-based Avery Dennison reported net income of $70.9 million or $0.76 per share for the fourth quarter, higher than $42.7 million or $0.43 per share in the prior-year quarter.

Income from continuing operations increased to $70.1 million or $0.75 per share from $44.7 million or $0.45 per share last year.

Adjusted earnings from continuing operations for the quarter were $0.90 per share, compared to $0.69 per share in the year-ago quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude special items.

Avery Dennison, which makes pressure-sensitive label and packaging materials, said sales for the quarter edged up 1 percent to $1.60 billion from $1.58 billion in the same quarter last year, but missed five Wall Street analysts' consensus estimate of $1.62 billion.

Pressure sensitive materials sales for the quarter rose 2 percent from the year-ago period to $1.18 billion, and accounted for majority of the quarterly sales.

Retail branding and information solutions sales declined 3 percent to $405.6 million, while sales for Vancive Medical Technologies grew 29 percent to $22.5 million from last year.

Provision fro income taxes for the quarter was $28.2 million, compared to last year's $53.0 million.

Looking ahead to fiscal 2015, Avery Dennison now forecasts adjusted earnings in a range of $3.20 to $3.40, excluding an estimated $0.25 per share for restructuring costs and other items. Street is currently looking for full-year 2015 earnings of $3.39 per share.

"We expect to increase earnings per share in 2015, despite a significant headwind from currency translation. We remain committed to achieving our long-term financial targets, growing through innovation and differentiated quality and service, with a continued focus on cost and capital discipline," Chairman and CEO Dean Scarborough said in a statement.

AVY closed Friday's regular trading session at $23.47, down $1.68 or 5.49% on a volume of 0.63 million shares.