Avery Dennison Corp. (AVY) - Bear of the Day

By
A A A

Avery Dennison's ( AVY ) third quarter adjusted EPS of $0.48 fell short of the Zacks Consensus Estimate of $0.59 and the $0.62 in the year-ago quarter. Avery Dennison has reduced its fiscal 2011 EPS guidance to between $2.15 and $2.30 due to apprehensions of continued weakness in volumes.

The Office and consumer products segment s volumes and sales have shown continued weakness due to weak end market demand and increased competition in the label category. Margins have been affected due to increased investment in demand creation, consumer promotions, and innovation, as well as lower volume.

Given lower volume expectations, higher tax rate and weak results in two of its largest businesses -- Pressure-Sensitive Materials and Retail Branding and Information Solutions -- we downgrade our recommendation from Neutral to Underperform with a target price of $26.00.
 
AVERY DENNISON ( AVY ): Free Stock Analysis Report
 
To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: AVY

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%

Most Active by Volume

183,639,073
  • $42.32 ▲ 3.85%
82,623,623
  • $15.99 ▼ 22.79%
39,547,942
  • $119 ▲ 1.19%
32,107,751
  • $77.62 ▲ 2.63%
29,684,848
  • $10.60 ▲ 2.02%
27,615,309
  • $24.03 ▲ 0.38%
26,917,669
  • $31.10 ▲ 2.07%
26,464,306
  • $47.75 ▲ 0.59%
As of 11/26/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com