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Investing.com -- Avery Dennison Corp (NYSE:AVY) missed Wall Street estimates for first-quarter earnings and trimmed its forecast for second-quarter profit amid macroeconomic uncertainty.
Shares fell 1.1% in light premarket trading.
The label and packaging materials maker posted adjusted earnings per share of $2.30 for the quarter ended March 29, slightly below the consensus estimate of $2.32.
While revenue came in at $2.15 billion, narrowly missing the $2.16 billion expected by analysts.
For the second quarter, the company projected adjusted EPS of $2.30 to $2.50, below analysts’ average estimate of $2.56.
JP Morgan downgraded the stock to "Neutral," citing tough year-over-year comparisons and flat sales and earnings.
Baird and Truist Securities both lowered their price targets but maintained positive ratings, with Baird saying Avery continues to execute very well on the operations despite investor concerns around global trade and RFID momentum.
Avery pointed to continued growth in intelligent labels, with increased RFID adoption in apparel and general retail, but analysts cited near-term demand uncertainty.
Adjusted EPS rose 0.4% year over year, or about 4% excluding currency effects, while organic sales increased 2.3%. Overall net sales were down 0.1%.