Avery Dennison rises on 3Q income and outlook
NEW YORK -- Shares of Avery Dennison Corp. jumped Wednesday after the office products maker reported better-than-expected results for the third quarter and raised its annual net income guidance.
Net income rose 8 percent and topped Wall Street estimates. The company narrowed its 2012 adjusted net income forecast to a range of $2 to $2.05 per share from $1.90 to $2.05 per share. Analysts expect Avery Dennison to report $1.94 per share in net income in 2012.
Avery Dennison shares rose $2.40, or 8.1 percent, to $32.15 in midday trading.
The Pasadena, Calif., company earned $58.3 million, or 57 cents per share, over the three months ended Sept. 29. That's up from $49.8 million, or 47 cents per share, one year ago. Revenue slipped 1 percent, to $1.49 billion, as revenue from label and packaging materials like self-adhesive labels fell 1 percent. Sales of retail branding, printer systems and fasteners rose 4 percent.
Analysts expected Avery Dennison to report net income of 46 cents per share and $1.48 billion in revenue.
In January Avery Dennison agreed to sell its office and consumer products business to 3M Co. for $550 million. That deal was called off in early October because of antitrust concerns. The deal would have given 3M a huge portion of the U.S. labels market to complement its Post-It sticky notes and other office supplies business. The Department of Justice threatened to sue to stop the sale.
Avery Dennison still plans to sell the business and counts it as a discontinued operation.