NYSE$AVY

Avery Dennison Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Avery Dennison's financial performance was in line with expectations in Q1 2023, despite lower revenue due to higher-than-anticipated inventory destocking.

Avery Dennison reported a 12% decrease in net sales to $2.1 billion and EPS of $1.49. Adjusted EPS was $1.70, a 29% decrease. The company revised its full-year EPS guidance downwards, citing a softer outlook for the second quarter.

  • Q1 2023 Reported EPS was $1.49.
  • Adjusted EPS (non-GAAP) was $1.70, down 29%.
  • Net sales declined 12% to $2.1 billion.
  • The company revised FY 2023 EPS guidance.

Headline financials

Total Revenue

$2.07B

Previous: $2.35B-12.1%
EPS (adj)

$1.70

Previous: $2.40-29.2%
Capital Expenditures

-$64.5M

Previous: -$49.7M-29.8%
Free Cash Flow

$56.7M

Previous: $149M-61.8%
Net Income

$121M

Previous: $198M-38.8%
Operating Income

$187M

Previous: $259M-27.7%
Gross Profit

$542M

Previous: $641M-15.4%
Cash & Equivalents

$351M

Previous: $147M+138.8%
Total Assets

$8.22B

Previous: $8.14B+1.0%
Stock-Based Comp

$10.5M

Previous: $11.1M-5.4%

Revenue & EPS history

Avery Dennison · Revenue · Quarterly

$2.07B

Q1 2023-12.1%vs Q1 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

The company has revised its guidance range for 2023 reported earnings per share from $8.85 to $9.25 to $8.35 to $8.70. Excluding an estimated $0.50 per share related to restructuring charges and other items, the company revised its guidance range for adjusted earnings per share from $9.15 to $9.55 to $8.85 to $9.20.

Tailwinds

  • Intelligent label programs are expected to accelerate.
  • Apparel volume is expected to rebound in the second half of 2023.
  • Solutions Group adjusted EBITDA margin is expected to sequentially improve.
  • The company anticipates label destocking to be largely complete by mid-year.
  • Materials Group adjusted EBITDA margin is expected to improve sequentially throughout 2023.

Headwinds

  • Underlying demand for products is impacted by global economic conditions.
  • Cost and availability of raw materials.
  • Competitors' actions, including pricing and expansion in key markets.
  • Foreign currency fluctuations.
  • Execution and integration of acquisitions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.9%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+1.3%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+10.1%

Q2 2022

Best reaction

-8.3%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%-1.2%-2.6%
Q4 2025+2.8%+1.4%-3.8%
Q3 2025+9.5%+10.4%+4.2%
Q2 2025+1.7%+1.7%-1.9%
Q1 2025-2.6%-2.6%+1.6%
Q4 2024-5.4%-5.3%-2.6%
Q3 2024-3.5%-2.5%-4.6%
Q2 2024-4.2%-4.7%-3.6%
Q1 2024+2.8%+3.3%+7.4%
Q4 2023-0.9%-2.6%+7.7%
Q3 2023-1.3%-0.3%+9.6%
Q2 2023+1.7%+3.9%+2.2%
Q1 2023-0.8%+2.3%-4.6%
Q4 2022-5.5%-4.2%-4.3%
Q3 2022-4.8%-4.2%+8.7%
Q2 2022+10.1%+10.9%+9.9%
Q1 2022+7.5%+7.1%+0.1%
Q4 2021-6.4%-12.1%-18.8%
Q3 2021+1.6%+3.5%+1.0%
Q2 2021+2.3%+2.5%+10.3%
Q1 2021+5.1%+4.6%+8.0%
Q3 2020+4.9%+3.7%+9.8%
Q2 2020-2.3%-5.9%-3.9%
Q1 2020-3.7%-6.8%-3.5%
Q4 2019+5.3%+3.7%-11.4%
Q3 2019+6.6%+7.7%+9.1%
Q2 2019+3.8%+4.4%+2.4%
Q1 2019-6.5%-5.5%-12.7%
Q4 2018+5.8%+5.0%+11.1%
Q3 2018-8.3%-9.1%-4.7%
Q2 2018+9.1%+9.2%+2.3%
Q1 2018+0.8%-0.6%+2.9%
Q4 2017+2.6%-3.0%-1.8%
Q3 2017+6.0%+6.5%+12.9%
Q2 2017-1.7%-2.1%-1.1%
Q1 2017+1.4%+1.4%+2.3%
Q4 2016+9.6%+8.9%+12.0%
Q3 2016-7.1%-7.9%-5.4%
Q2 2016+8.7%+7.8%+7.8%
Q1 2016+1.0%
Q4 2015+7.5%
Q3 2015+1.1%
Q2 2015+0.8%
Q1 2015+7.2%
Q4 2014-0.8%
Q3 2014+2.4%
Q2 2014-2.7%
Q1 2014-5.3%
Q4 2013-3.8%
Q3 2013+8.6%
Q2 2013-1.1%
Q1 2013+0.6%
Q4 2012+6.6%
Q3 2012+9.1%
Q2 2012+5.9%
Q1 2012-0.4%
Q4 2011+0.2%
Q3 2011-3.5%
Q2 2011-1.1%
Q4 2008+1.1%
Q1 2011-1.2%
Q3 2010+0.2%
Q3 2009+0.2%
Q2 2010-4.5%
Q4 2010-4.5%
Q2 2009-4.5%
Q1 2010-1.9%

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