Avery Dennison Details Weak Q2 Outlook
Avery Dennison provided a weak second-quarter outlook and also cut its expectations for the full year. The company attributed the weak outlook to a nearly 5% decline in unit volumes at its Pressure-sensitive Materials, and Retail Branding & Information Solutions segments.
For the second quarter, the company expects earnings of $0.64 to $0.69 per share, and adjusted earnings of $0.74 to $0.79 per share.
On average, seven analysts polled by Thomson Reuters expect earnings of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
The Pasadena, California-based company expects second-quarter revenues of about $1.7 billion. Wall Street analysts expected revenues of $1.83 billion for the quarter.
CEO Dean Scarborough said, "In the second quarter, volume in our two largest segments was negatively impacted as consumer packaged goods companies and apparel retailers and brands became more cautious about consumer sentiment and the impact of rising retail prices to offset inflation.
For the full year 2011, Avery Dennison expects earnings in the range of $2.25 to $2.55 per share. The company further cut its full-year adjusted earnings outlook, and now expects it in the range of $2.45 to $2.75 per share, compared with its prior outlook of $3.00 to $3.30 per share. The company expects revenues of $6.8 to $6.9 billion.
Street analysts currently expect the company to earn $3.04 per share on revenues of $7.06 billion for the full year.
