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MENTOR, Ohio - Avery Dennison Corporation (NYSE:AVY) reported better-than-expected third-quarter earnings on Wednesday, navigating what it called a "dynamic environment."
The materials science company’s shares were up 1.63% in pre-market trading after the announcement.
The company posted adjusted earnings per share of $2.37 for its third quarter, exceeding analyst expectations of $2.33. Revenue came in at $2.22 billion, in line with consensus estimates and up 1.5% YoY. On an organic basis, sales were comparable to the prior year.
"We delivered a solid third quarter, with earnings above expectations in a continued dynamic environment, reflecting the strength and durability of our overall portfolio," said Deon Stander, president and CEO.
The company’s Materials Group reported sales of $1.5 billion, up 1.2%, though organic sales declined 1.9% as modest volume growth was offset by deflation-related price reductions. The segment’s adjusted operating margin improved to 15.2%, up 40 basis points from the prior year.
Meanwhile, the Solutions Group saw sales increase 2% to $700 million, with organic growth of 3.6%. The division’s high-value categories, including Intelligent Labels, grew at high single digits, though adjusted operating margin declined 130 basis points to 10%.
For the fourth quarter, Avery Dennison provided adjusted earnings guidance of $2.35 to $2.45 per share, compared to analyst expectations of $2.44.
Through the first three quarters of 2025, the company returned $670 million to shareholders through share repurchases and dividends. The company also completed its previously announced acquisition of Taylor Adhesives, a U.S.-based flooring adhesives business, for $390 million in October.
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