Avery Dennison Lifts FY Profit View Above Market As Q3 Profit Tops Estimates

(RTTNews) - Avery Dennison Corp. (AVY), a provider of labeling and packaging materials and solutions, on Wednesday raised its fiscal 2016 guidance midpoint for reported and adjusted earnings per share by $0.10, due in part to lower tax rate.

For the year, the company now expects earnings per share of $3.50 to $3.55, and adjusted earnings per share of $3.95 to $4.00.

On average, 9 analysts polled by Thomson Reuters expect earnings of $3.94 per share for the year. Analysts' estimates typically exclude special items.

Mitch Butier, Avery Dennison president and CEO, said, "Overall, our outlook has improved for full year earnings per share by ten cents. The effective execution of our strategies continues to enhance our competitive advantage, while driving profitable growth and improving returns."

In its third quarter, the company's net income increased 9 percent to $89.1 million from $81.7 million last year. Earnings per share were $0.98, 11 percent higher than $0.88 a year ago.

Adjusted earnings per share from continuing operations were $1.01, compared to $0.87 a year ago.

Total net sales in the quarter increased 3 percent to $1.51 billion from prior year's $1.47 billion. Organic sales growth was approximately 3 percent.

Analysts expected earnings of $1 per share on sales of $1.51 billion for the quarter.

The company noted that PSM continues to deliver, with strong emerging market growth and ongoing operational excellence worldwide.