Avery Dennison Earnings & Revenues Fall Short of Estimates in Q1

Core Insights - Avery Dennison Corporation (AVY) reported adjusted earnings of $2.30 per share for Q1 2025, slightly missing the Zacks Consensus Estimate of$2.32, but showing a 0.4% year-over-year improvement [1] - Total revenues decreased by 0.1% year over year to $2.148 billion, falling short of the Zacks Consensus Estimate of$2.151 billion [2] Financial Performance - The cost of sales increased by 0.5% year over year to $1.53 billion, while gross profit fell by 1.7$621.5 million [2] - Marketing, general, and administrative expenses were reduced to $347 million from$365 million in the previous year, with adjusted operating profit slightly increasing to $274.5 million from$273.7 million [3] - The adjusted operating margin improved to 12.8% from 12.7% year over year [3] Segment Performance - Revenues in the Materials Group segment declined by 1.1% year over year to $1.48 billion, missing the estimate of$1.49 billion, although organic sales increased by 1.2% [4] - The Solutions Group saw a revenue increase of 2% year over year to $668 million, surpassing the estimated$655 million, with organic sales improving by 4.9% [5] Cash and Debt Position - The company returned $331 million to shareholders through share repurchases and dividends in Q1 2025, repurchasing 1.4 million shares [6] - Cash and cash equivalents at the end of the quarter were$196 million, up from $186 million a year ago, while long-term debt rose to$2.58 billion from $2.07 billion [7] - The company achieved approximately$14 million in pre-tax savings from restructuring, incurring pre-tax restructuring charges of around $5 million [7] Guidance - For Q2 2025, the company expects adjusted EPS to be between$2.30 and $2.50 [8] Stock Performance - AVY shares have decreased by 15.9% over the past year, contrasting with the industry's growth of 20.7% [9]